From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1521 topics, 14438 posts — Last Post 04/23/14, 03:19PM

BiggerPockets Exclusive PRO Area

118 topics, 844 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10971 topics, 86467 posts — Last Post 04/23/14, 03:13PM

Real Estate Success Stories

398 topics, 6192 posts — Last Post 04/23/14, 03:13PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5987 topics, 47187 posts — Last Post 04/23/14, 03:25PM

Renters

649 topics, 5857 posts — Last Post 04/23/14, 02:47PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/21/14, 03:59PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

658 topics, 6316 posts — Last Post 04/23/14, 09:50AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3706 topics, 29715 posts — Last Post 04/23/14, 03:26PM

Real Estate Guru, Book & Course Reviews and Discussions

1139 topics, 11598 posts — Last Post 04/23/14, 02:31PM

Ask About A Real Estate Company

743 topics, 7344 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5632 topics, 43923 posts — Last Post 04/23/14, 03:09PM

Rehabbing and House Flipping

3351 topics, 31097 posts — Last Post 04/23/14, 02:09PM

Real Estate Development & New Home Construction

554 topics, 4694 posts — Last Post 04/22/14, 09:17PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

867 topics, 6692 posts — Last Post 04/22/14, 08:22PM

Rent to Own a.k.a. Lease Purchase, Lease Options

698 topics, 4926 posts — Last Post 04/23/14, 01:33PM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3103 posts — Last Post 04/23/14, 02:29PM

REOs

1217 topics, 10595 posts — Last Post 04/23/14, 09:23AM

Short Sales

1538 topics, 13139 posts — Last Post 04/22/14, 01:38PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7243 topics, 71117 posts — Last Post 04/23/14, 02:51PM

Mobile Homes & Mobile Home Park Investing

639 topics, 5144 posts — Last Post 04/23/14, 07:57AM

Investor Basics

Starting Out

7727 topics, 60654 posts — Last Post 04/23/14, 02:30PM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4727 topics, 37315 posts — Last Post 04/23/14, 02:57PM

Real Estate Investor Marketing

1738 topics, 14146 posts — Last Post 04/23/14, 03:15PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1412 topics, 9004 posts — Last Post 04/23/14, 02:19PM

Multi-Family and Apartment Investing

1123 topics, 9379 posts — Last Post 04/23/14, 02:55PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

644 topics, 4910 posts — Last Post 04/23/14, 10:40AM

Business Basics

Goals, Business Plans & Entities

832 topics, 7571 posts — Last Post 04/23/14, 09:48AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2802 topics, 20134 posts — Last Post 04/23/14, 03:16PM

Property Insurance

311 topics, 2057 posts — Last Post 04/23/14, 01:20PM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2852 topics, 19842 posts — Last Post 04/23/14, 02:44PM

Creative Real Estate Financing

1219 topics, 8850 posts — Last Post 04/23/14, 03:24PM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1217 topics, 8024 posts — Last Post 04/23/14, 08:23AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1929 posts — Last Post 04/22/14, 11:03AM

Contractors

269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2014 topics, 11746 posts — Last Post 04/23/14, 03:10PM

Americans & International Real Estate

162 topics, 568 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 439 posts — Last Post 04/22/14, 09:27AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15079 topics, 54108 posts — Last Post 04/23/14, 02:57PM

Real Estate Events and Happenings

167 topics, 2591 posts — Last Post 04/23/14, 02:26PM

Off-Topic

Off Topic

Off-Topic

2907 topics, 32441 posts — Last Post 04/23/14, 11:24AM

Housing News & Real Estate Market

920 topics, 8391 posts — Last Post 04/23/14, 02:43PM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Commercial Real Estate Investing Forum » Any loan officers/professionals with advice on how current sub2's will affect new commercial loan?

Any loan officers/professionals with advice on how current sub2's will affect new commercial loan?

6 posts by 4 users

Signup

Multi-family Investor · Navarre Beach, Florida


I have an appointment tomorrow afternoon with a commercial loan officer and want to be as prepared as possible so as to not shoot myself in the foot.

Here's my situation:

I am in the middle (in underwriting) of buying a new home. My current home will become a rental once I close and move out. I currently own (sub2) 2 other residential properties that are currently rented out. I am meeting with loan officer about financing a small 6 unit apartment building.

My goal is to voice my stance on moving forward after underwriting is done on my new home. My concern is in regards to how they will view the sub2 properties. Will they see them as outstanding debt, or since the seller is legally liable for them would it still viewed as his debt?

Further, since my name is on the deed, can I claim the rental monies off them? And finally, will it look to them as the properties are paid off since deed is in my name and there aren't any loans out for them in my name? Or should I just ignore them altogether as if they don't exist for the purpose of this new loan?

Sorry for the train wreck rant, just want to make sure I get all details out there so I can get some good advice.



· Oklahoma City, Oklahoma


Short answer is if you do not have loans in your name for those properties they will not count towards your debt/income, however you can claim the rental monies if you can show proof. Also, they will actually be viewed as assets since you technically own the property without a loan. Hope this helps.



Multi-family Investor · Navarre Beach, Florida


Awesome, thank you!



Commercial Lender · New York City, New York


@Jay Gilkey is right on viewed as an asset, and the lender will ask you to fill out a personal financial statement (PFS); so they will see it. Its not going to hurt you.



Hard Money Lender · Tempe, Arizona


In filling out your personal financial statement, you are required to both list the subject 2 properties as assets (as you do own them), and also list the debt against the property as a liability, although you can indicate that you are not liable for the debt. Yo list only the asset and not the debt would be falsifying your financial statement by providing a greatly inflated net worth. To leave off the debt is mortgage fraud. Please be careful about accepting off the cuff answers from people who lack knowledge in the business.



Commercial Lender · New York City, New York


@Don Konipol: just keeping it short but I meant the whole thing; since you don't read between the lines
chumly!





Sign up