How about getting a seperate legal entity (LLC co ect)
to sign a lease agreement to rent property
with payments to begin immediately even during the rehab ?
I got around it by getting a "no ratio loan. they dont consider your income because they dont check it. you pay a higher rate, but i had to or I couldnt get the loan.
Quote:
On 2005-03-05 01:06, aointedu wrote:
How about getting a seperate legal entity (LLC co ect)
to sign a lease agreement to rent property
with payments to begin immediately even during the rehab ?
So, if I understand correctly, I would personally take out the loan, and I would lease to my LLC while I rehab. Correct? That sounds like a great idea! How about if my LLC buys the property and leases it to me? Would it work this way also? Any problem with doing it this way vs. the opposite? Any other ideas?
The LLS would still have to qualify for a loan, which ios basically the same thiong as you taking out the loan yourself. It just gets more difficult (and more expensive) to get a loan thru your LLC when you are just beginning.
As suggested above, you can get a no-doc or stated income loan. You basically tell them what you make without too much supporting documentation. The down side is that you credit scores have to be high & you will have to pay more for it with a higher interest rate(becuase the bank is taking more risk). Find a good mortgage broker & let him do the work for you.
You need to find a lender that is up to speed on investor lending. There are allot of conforming lenders out there that simply do not get it when it comes to investment properties. You need someone that is creative to help guide you into deals with financing that will work for NOO.
good point...i definitely would set up some type of LLC or LLP and no type of general partnership...even though from the sounds of it he has more risk than you do....
What do you want to do with this house? Is the appreciation in your area better now? 6.7% appreciation in four years is not an exciting real estate asset (at least for me). If you are looking for cash flow, you need to look at the rental income in your area and see if this makes sense. Also, the current loan-to-value ratio is pretty high. You might also get some suggestions of a subject - to or short sale purchase.
Your last post was a bit confusing to me. Are you suggesting acquiring the property by offering a lease option to the seller or do you mean offer a lease option to a possible buyer? If you lease option it to a prospective buyer you will increase your cash flow because of the option consideration and you will not need a realtor since you have identified a buyer.
I would think running an ad for Rent-to-Own might work. When you get calls, you can qualify them and tell them that you will likely have an available house very soon and take names and phone numbers.
Not certain in what term you are speaking ie( location, finance, operating)
With resoect to location you might conssder Buffalo, NY 8-)
Good Starting
Joel
How about getting a seperate legal entity (LLC co ect)
to sign a lease agreement to rent property
with payments to begin immediately even during the rehab ?
I got around it by getting a "no ratio loan. they dont consider your income because they dont check it. you pay a higher rate, but i had to or I couldnt get the loan.
Quote:
On 2005-03-05 01:06, aointedu wrote:
How about getting a seperate legal entity (LLC co ect)
to sign a lease agreement to rent property
with payments to begin immediately even during the rehab ?
So, if I understand correctly, I would personally take out the loan, and I would lease to my LLC while I rehab. Correct? That sounds like a great idea! How about if my LLC buys the property and leases it to me? Would it work this way also? Any problem with doing it this way vs. the opposite? Any other ideas?
The LLS would still have to qualify for a loan, which ios basically the same thiong as you taking out the loan yourself. It just gets more difficult (and more expensive) to get a loan thru your LLC when you are just beginning.
As suggested above, you can get a no-doc or stated income loan. You basically tell them what you make without too much supporting documentation. The down side is that you credit scores have to be high & you will have to pay more for it with a higher interest rate(becuase the bank is taking more risk). Find a good mortgage broker & let him do the work for you.
You need to find a lender that is up to speed on investor lending. There are allot of conforming lenders out there that simply do not get it when it comes to investment properties. You need someone that is creative to help guide you into deals with financing that will work for NOO.
Good Luck,
Robert
good point...i definitely would set up some type of LLC or LLP and no type of general partnership...even though from the sounds of it he has more risk than you do....
What do you want to do with this house? Is the appreciation in your area better now? 6.7% appreciation in four years is not an exciting real estate asset (at least for me). If you are looking for cash flow, you need to look at the rental income in your area and see if this makes sense. Also, the current loan-to-value ratio is pretty high. You might also get some suggestions of a subject - to or short sale purchase.
Your last post was a bit confusing to me. Are you suggesting acquiring the property by offering a lease option to the seller or do you mean offer a lease option to a possible buyer? If you lease option it to a prospective buyer you will increase your cash flow because of the option consideration and you will not need a realtor since you have identified a buyer.
I would think running an ad for Rent-to-Own might work. When you get calls, you can qualify them and tell them that you will likely have an available house very soon and take names and phone numbers.
At least send him a letter or postcard.
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