How Does A HELOC Affect Debt Ratio?
How does most lenders look at HELOC when it comes to debt-to-income ratio? I have 4 rental properties and was thinking of getting a 25k HELOC for emergencies until I build up my cash reserves. Will they look at the entire debt even if I have a zero balance thus affecting my debt ratio and cause me not to qualify for more properties?
If you absorb the info from this site it will definitely make you an invaluable tool with your client due to your knowledgeable concerning various facets of the RE business.
very well said Jim
great Job...
the only thing I would add is to stop working for a commission check as fast as posible...
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Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 12/09/2005 ]
Let me say I am one.... Realtor that is...Even own a Brokerage Company
And when selling I see the advantages of using the MLS system for the highest return on investment...
However when buying I would rather not use the MLS system as in my opinion the buyer pays real estate fees through the price of the house and I wouldn’t want to assume those costs...
With that said there are a number of agents on this site who disagree with me every time I bring this point up.
And some have good viewpoints...
At the end of the day I cant see an Agent fulfilling their obligation to the seller by advising them to accept a 65% to 75% of market value offer.
Now that doesn’t mean it isn’t done just done rarely...
And if you do use an agent don’t use the same one as the seller as the agent’s fiduciary responsibility is always to the seller first....
If you want the other sides opinion Jimandlacy have articulated their viewpoints very well.
Good Luck
[addsig]
John....
You’re not going to get many Christmas cards from Real Estate agents talking like that....
On a serious note I am surprised that you don’t see value in the MLS system for resale of property..
I understand not wanting to use an exclusive right to sell and agency relationship listing agreement but there are agents that will take your listing under an "Open listing Agreement"
I know you know what an Open Listing Agreement is, but for those that may not, it is an agreement that only pays commission in the case of procuring cause, which is to the agent who finds the buyer and it also allows for the seller to market and sell the property without commission due the agent if the seller or anyone else finds the buyer.
And with flat fee listing services you’re only paying less than 500.00 plus the one side commission..
Now if you have a buyers list sufficient to turn your properties as fast as the MLS I get your reasoning and if you don’t than I don’t.
BTW where do I mail your Christmas card?
[addsig]
I have that book in my library also.
If you take a look at the inside flap or back, you will notice that the author is a BROKER himself, so it makes perfect sense to make that statement to help his fellow agents and brokers get a commission. This is a scare tactic to make you use an intermediary.
Now on the other side of the coin, a lot of new people have not developed enough negotiating skills to be able to buy or sell a house, so that statement may need to apply to those who are unsure of themselves.
In answer to your question, no I do not believe it is wiser to use agents when buying and selling especially if you are experienced. You can get the job done yourself, the way you want it, and not have to pay a huge commission for it.
Remember also that most agents wear a conventional hat and have no idea how to think out of the box. If your deal is being done creatively, there is a good chance the deal will be blown by the intermediary because of lack of training on their part. So if you can do it yourself, then do it.
John (LV)
[ Edited by jfmlv1950 on Date 12/23/2005 ]