Financing
Is anyone having problems getting financing for their 4th or 5th properties. I am finding solid deals but am told I just have to much debt. Any thoughts or ideas on how to get around these problems and keep purchasing properties without putting down 20%? Thanks Guys and Gals
John 
Commercial:
It would be interesting to understand what the actual FNMA rules are.
Several people at a local rei club said the got to X loans (I for get X, like 4-5), and they bank said no due to the number of loans not DTI. I thought that was very odd.
Weezer218,
I am in the same boat. I have a few more properties than you and have a hard time getting financing unless I go to my same bank. I do have to put 20% down but I just use equity I have in my properties as the down payment. That way sometimes I borrow the whole amount but they put a equity lien on one of my other properties. Do you have any equity you can use? Good Luck and if you find anyone good let me know.
Jeff
Studlee
Thats exactly what I have been doing, using existing equity in other properties to come up with the 20% down in most cases. I guess Im just looking for an easier way to purchase additional property without going though that process and to avoid having to put down the 20% that is needed.
Hi:
I have 11 single family homes here. All of these
have mortgages and are all income properties
which I bought during the past about three years.
I did pay 20 % down payment and I kept getting the
same objection of D2I ratio. Do not lose heart and
keep trying different lenders. I am expecting that
your FICO scores are reasonable. Please keep
going and do not be discouraged.
sayana
Regarding Fannie Mae guidelines. From the Fannie Mae Selling Guide:
"if the mortgage is secured by a second home or an investment property, the borrower may not own more than ten properties (including his or her principal residence) that are currently being financed."
This does not include properties owned by an entity owned by the purchaser or commercial property.
Good luck...
[ Edited by Mize on Date 09/06/2005 ][ Edited by Mize on Date 09/06/2005 ]
This ties into the article that I was looking for concerning an individual who owned a ton of propeties:
http://www.thecreativeinvestor.com/commercial/ViewTopic49660-24.html
If that is a Fannie Mae guideline (above post) then how can some investors have 10+ rental units? There must be a loophole that they are following.
There is a trust strategy for cleaning up your credit file and showing no properties at all. You quit claim your properties into a trust, they will need at least 75% equity in the properties, then a portfolio refinance loan will clean up your personal credit file.
Good Luck,
Robert
[addsig]
I just started up with a partner who has a good amount of capital but no R.E. knowledge. I am starting with the basics of investing and took some courses in it, anyone have any tips to start me off with out of state investing, such as the TX area? I am currently from NY...terrible place to invest it seems...any feedback to get me started will be appreciates. Thanks!
The stories about the condos in Florida where you buy before ground breaking and sell when complete and you make 150k in the year it takes to build--NOT in SA.
San Antonio has seen some growth and is definately a solid market. There is no bubble here. Actually market prices are comparatively low. I dont think there will be the outrageous appreciation rates like other parts of the county though. The Toyota plant has sparked some growth on the southside and should have a ripple effect with employment.
Now does seem like the time to be holding property in the cheaper markets like San Antonio. I am trying to rehab and hold as much as possible. No new construction for me.
Sham718
You are quite correct that Long Island has become quite difficult area to invest profitably. I am also trying to find properties in other states where one can hope for some positive cash flow at the end of the day.
One of the thing you will have to find is a good property management company to run your property on regular basis.
Sham718
You are quite correct that Long Island has become quite difficult area to invest profitably. I am also trying to find properties in other states where one can hope for some positive cash flow at the end of the day.
One of the thing you will have to find is a good property management company to run your property on regular basis.
if you held those properties in an S corp the minute you Quit Claim that over to yourself that is considered a transfer of title and you owe taxes on the difference btwn the transfer amount and your basis. Long term cap gains rate is based on one year and one day. you may want to think about holding properties you plan on refi cash out in an llc taxed as a partnership.
Gotcha on the cap gain.
I did hold for year before refi.
So I think I will close on 2 or 3 in Jan and buy something bigger.
Thanks Tony T.