All Forum Posts by: Zoran Stanoev

Is the 5 unit limitation because of their lending limitation? If that's the case, have you tried other lenders?  What about doing a cash out refi? Or finding a portfolio lender and doing a refi for all 11 as a package? Or maybe even selling all 11 and doing a 1031 exchange?  I'm throwing out ideas, sorry if you've considered these already.  Good luck

Have you asked your real estate attorney? 

Or just contact the water department and ask. If you get transferred to another person, that may mean it's a yes.

I'm not sure where the opportunity is in this scenario.  I get the sense you decide you wanted to get into investing, looked around and saw your mom's townhouse and are now trying to make a square peg fit into a round hole. It also sounds like she has no interest in having a rental and she's being convinced to be your guinea pig.  

From my reading of your question, I think your mom is a traditional home buyer (sell her current place and buy a new one). I think she needs to find a new place that fits her needs and get the best financing she can. Then, if she has money left over and she wants to act as a private lender, she can invest in an opportunity you find. 

I think if you try to do all sorts of financing gymnastics to try and make something work, it can turn ugly.  And if your mom isn't totally on board (i.e. she doesn't want a rental property), it's going to cause more issues than just possibly losing some money.  

I think borrowing money from older people is riskier than borrowing from younger people. If a 30 year old loses 60k, they've got lots of time to make it up. If a 65year told loses 60k, they may not have a place to live much longer. 

Good luck.

Is anyone else staying at an AirBnB? 

@Francisco Alzuru when you say you moved to KY, you mean your investing or you personally?  What market specifically works?  thanks

After I formed an LLC, I began receiving credit card applications for the LLC. They typically offer no fee for the first year and then a fee thereafter. But you can apply and get the card, and then start using it for business purchases (be sure to pay it off). You can also open corporate/business accounts at places like Home Depot. It will take time, but this will help build your business credit. However, to actually be able to take a business loan from a bank will also require a good relationship with the bank (a portfolio lender). However, I do know there are lenders, similar to hard money lenders, that will extend business lines of credit. I usually find them at my local REIAs. Good luck.

There is also a conventional loan product that allows you to include the cost of a rehab in the loan.  This way you won't have to worry about not being able to pay back a hard money lender. Sorry, but I'm not sure what it's called, but I'd reach out to your bank/lender or maybe someone here is familiar with it.  good luck

I think patience and getting clear on your goals and strategy may help. It sounds like you want things to move quickly but things aren’t in alignment. You bought vacant land, which not only made you cash poor but now you can’t sell it or even leverage it. That seems inconsistent with wanting to buy your next property quickly. I think saving some money while you try to sell the vacant land to get more cash is a good next step. There’s no downside because the longer you hold the land, the more you continue to save.

@Russell Brazil I’m aware that it happens. Thanks. But I’m going to guess that your situation is different.

You can act however you want, but that scenario would be considered mortgage fraud. and if your mother is aware, she could also face some consequences.  If your investing strategy requires getting your mother involved in a mortgage fraud scheme, I think it'd be best to find a new strategy.  New York is a big state, there have to be other markets within driving distance that work better.