All Forum Posts by: Cody Steck

Here are some exceptions to the fair housing act. Note the two parts where it talks about multi-family housing owner occupant and the single family housing. 

They talk about the fair housing act and its exceptions in the licensing course for Utah. 

This website is obviously not a government site and the information should be acknowledged as such. I'm not a lawyer. Seek legal advice for further questions.

http://www.dummies.com/how-to/content/1968-federal-fair-housing-act-exceptions-on-the-re.html

I believe that owning free and clear properties becomes most attractive if you don't plan on making any further purchases. Why not enjoy all of the benefits of OPM while you expand your empire and then when you are "finished" start to pay off your debt to provide security and maximize cash flow.

I plan to do something similar to this where I amass my desired amount of units using a lot of leverage and then when I start to slow down I will start putting 30-45% down on properties or refinancing to this so that I can enjoy cash flow, tax benefits, and still have peace of mind while not leaving all of my equity at risk. 

At the very end, I would like to have 15-20 properties free and clear with leverage on the rest of them. 

@Jon Holdman

3% down payment program is new. I did an OO 5% down conventional loan last fall. However, like it was mentioned, you must have high credit and it is only for single units.

There is a lot of discussion about "due on sale" on the website here, just do some searching and see what you can find. Yes, that clause is in there to protect the bank from shady things, however, as you will find, it is extremely rare for the bank to call it due unless there is a reason - i.e. payments stop coming in.

Is your mom's mortgage from a U.S. Bank?

Depending on what the remaining balance on the loan is, do you have enough capital to cover the balance if the bank actually did call the note due?

Typically, a bank won't lend on the down payment because that puts them in second position without a chance of there being a lot of equity to cover their loan if you default. 

Other options are to try to negotiate with the seller to work with your down payment in return for a little bit higher interest rate, or a little bit higher purchase price. Or, get creative, maybe there is something outside of this transaction that you can offer him. 

You can also look for a private money loan that is OK taking a second position.

Just remember to make sure that all your numbers will still work. Good luck!

You can buy lists from places like listsource.

And I also believe that title companies can pull similar lists for you. (can somebody verify?) I've heard that sometimes they will do it for free in hopes that you find a deal and use them in the transaction.

How active does your business account need to be? If you simply operate out of it by depositing checks into the business account and then taking a draw or something is that enough? Does it have to be consistent?

Also, how simple can your financial statements be? For example, when starting out, can it be as easy as:

+$1000 (wholesale)

-$200 ("salary")

-$500 (Direct mail campaign)

-$100 (miscellaneous expenses)

Profit = $200. 

And just grow from there? (Obviously that is a very basic example)

@Michael Jobe I have already come to realize my time is very valuable and I don't want to let it go towards working for free haha.

Thanks, guys! I am in touch with a couple different landlords, hopefully we can find something.

It does actually, I'm a newer agent so I have yet to use that. Thanks! I will check that out.

I have a client who is in a bit of a crunch - They were in a lease option and it has fallen apart. They are looking for another lease option or they need to get into a rental for ~6 months. If I help them find a rental, how do I go about asking for a referral from the landlord?

I've never done this so I don't want to waste my time working with them for free, I'm just not sure how to structure it.