All Forum Posts by: Will Barnard

Depends on the HML, but many lend on a multiple variety of invbestments so long as they deem the investment profitable and safe for them.

TJ,
Your problem, as you stated, of having the money but not the credit, which is opposite of several others, puts you in the driver's seat.
I am investing in your area and perhaps I can help. Feel free to send me a message or email.

Dwayne,
The Forbes "Stocks vs. RE" graph only takes into consideration appreciation. It does not include cash flow, tax deductions (also cash in your pocket), forced appreciation (increased value through captial expenditures & other sources), or even the possibility of buying below the value which you can not do in stocks. If you were to add all of these items in, RE would come out on top. Of course you have less liquidity, more costs to sell (which can be avoided by advanced techniques), and costs to buy (which also can be reduced or eliminated in some cases).

There is no doughbt in my mind that anyone wishing to invest in stocks right now will come out ahead as they are "on sale" right now. Warren Buffet is buying and unless you are a folol, he is a man to be listened to. On the other hand, RE is also on sale, possible more so than ever (or since the great depression), and anyone purchasing RE now will alos come out ahead.

The real answer to the original question is, what is comfortable for the individual investor? Is one vehicle more profitable than the other? That would depend on the investor's abilities and knowledge. Some can deal with the management necessities of RE, and others want a more hands off approach with stocks.
The choice is yours, but both are good right now!

Welcome to BP!
I am not from Texas, but I invest there and am in Dallas/Fort Worth as well as San Antonio quite often.
Great place to invest here in Texas!

Jason Wrote:
"I apologize for jumping the gun and saying bail, but I have spoken with so many people in foreclosure over the years that let their situation completely ruin every facet of their life. It's hard to convince someone with a pending foreclosure that credit, money and their homes aren't everything. I agree, it's important to pay your debts, but it should not be at the expense of your physical and emotional well being."
While thtat may be true Jason, you are mixing together two completely different senarios into one situation. There is a big difference between a homeowner who, for whatever reason, is behind on their mortgage payments, and an investor who overleveraged (knowingly and admittingly) on multiple properties and now wants the easy way ot/bail out.
I do not intend to have a back and forth with you here, but I believe you are clearly misunderstanding this situation. It is nothing more than irresponsible behavior from an investor who wants a handout, nothing more, and I think it is the root of the problem here in the US.

Wrong Wrong Wrong Jason!
Roy overleveraged all of his investments and now wants to jump ship and put the bill on someone else?!
That is completely irresponsible and the main reason the market and this country are in the mess we are in.

Too many greedy and irresponsible investors along with greedy loan officers and bank CEO's all want to have the American tax payer bail them out. It is ridiculous and in my opinion, unconstitutional.

Try this Roy: Keep your tenants in place and continue to make all of your mortgage payments. If you are in a negative cash flow position, find a way to earn some income to cover it, When the market does recover (which it will), you can then find equity in some of your rentals and sell them to pay off the LOC you over-borrowed from. Take responsibility for your actions rather than the easy way out and dump it back to the bank. Do not add to the problem, fix the problem.

Nothing wrong with your strategy Daniel. Make sure you have an iron clad contract with the seller, no due on sale clause, etc. and negotiate the best rate and terms possible on the owner carry.

On the flip side, negotiate the highest interest rate (of course) and you could even offer an initial lease option for 6-12 months to increase cash flow, get them used to paying higher than rent (which I assume the mortgage, taxes and insurance on their end will be higher than the current rent) and get a spread on the rent, a spread on the interest rate after the option is exercised, and an upfront fee on the lease option. You get several paydays this way.
Best of all, you do this with none of your money or credit, unless the seller wants some down $.

Great value for you.

Doug,
I understand your anger and frustration. I always want to strike back and "hurt them in the pocket book" as they have done to me. Unfortunately, getting paid is almost impossible and all you will be doing is spending more $ also called chasing bad money.
Mitch makes some good points as well, however, I have been burned more times than not by "trusting" or accepting tenants excuses, etc. The bottom line is, you have a morgage and other expenses to make. Just because you are a landlord, does not mean you are rich and can afford to pay your tenants rent for them.
Also, Mitch pointed out that a tenant may consider striling back at you if you attempt the small claims road. If you did choose to do this, I would only do it after the tenant is gone and after you have placed a new tenant. That way, you reduce/eliminate that exposure.

Can you sue - Yes
Can you Win - Yes
Can you collect - Probably not
I have yet to be successful in collecting from a court judgment.

If you are referring to FHA loans (Freddie, Fannie, etc.) then yes, the limit has been lowered to 4 properties. This does not mean that you can not get non FHA loans from local banks, commercial loans from banks, or private investor loans.