All Forum Posts by: Dustin Beam

You can't underestimate the importance of reputation, but people sometimes deserve second  chances.

My advice would be the same if this question was asked about something you did wrong at work, in a marriage, or anything else.

Start small, never ever do anything to cause doubt, be consistent and patient in repairing your reputation. Eventually people will regain their trust in you, but some won't and you probably just need to accept that. 

I don't think there's anything wrong with someone wanting a good price even if it already meets their qualifications. There are different motivations for doing so, and yes greed might be one of them. 

But what if they know they need to cash out refinance? What if they believe it's a fair price today, but they expect a market correction and want extra security? 

My point is that there are many reasons to want a better than fair price that aren't necessarily born out of greed.

So this isn't a question or advice thread, but I did read these two articles. Both are the same but one is interviewing men and the other women.

I did find interesting similarities between the upper half of income earners vs the lower half.

Granted, the people barely scraping by are going to have a much harder time getting involved in this game, but all the same, it's a quick read that hopefully reaffirms what most of us are trying to do....be financially well off! 

Women's Version

Men's Version

@Account Closed I just decided to go after whatever made sense. If there are distinguishable differences in landlord laws, it didn't sway my decision either way. I don't think either state is terrible for landlords, although maybe not the best landlording state. That I really don't know. Bottom line is that I want to stay local for the time being and I didn't see any reason to go to one side or the other....so just looked all over the metro.

That's not to say landlord's have equal protection on both sides, only that I don't know the difference.

Sorry, I'm sure it's not a lot of help, but maybe someone else can expand on this.

If I understand your question correctly it seems like paying capital gains would be the way to go. 

Scenario A: For example, for easy math let's say $10k in capital gains taxed at 30%. You get $7k, uncle Sam gets $3k.

Scenario B: You spend $5k on maintenance/improvement. Now you're taxed $5k, receiving 3500 and giving 1500 to uncle Sam.

I'd take more money even if that means taxes get more too. Hopefully that's the question your were asking.

@Laura Thorne AFAIK, you should still be able to buy smaller properties with a commercial loan of you want. You're just required to go commercial at 5 units plus.

I just formed an LLC so I can only repeat what I found when doing searches here. Some people don't think LLCs are necessary if you have umbrella coverage. Some do.

I decided I wanted to go ahead and do it anyway. I can always add umbrella as well.

As far as getting rejected on your loans.....I'm assuming you're trying for 30 year fixed traditional financing? If so, I was told the same thing, they won't do it. However, I got no push back when going through commercial lending. From what I understand, the banks I talked to keep their commercial loans. They sell off their traditional Freddie Mac types.

Just an avenue you may want to explore if you haven't already. Be prepared if you don't already know, commercial loans have adjustable mortgage rates.

What are the reasons you're being denied financing? D/I ratio?

@Account Closed

I agree. I'm not totally concerned with its CAP rate now. But I will if/when it comes time to sell.

Thanks, Matt. I'm under contract now, so hopefully everything works out through closing. Everything in that spreadsheet needs scaled about 50% higher though. 

The bank approved the loan so I guess they liked the numbers! Haha. They wanted a business plan too, I went above and beyond making it professional looking to try and impress them. 

As far as CAP rate, I don't have it figured in there but I should. I think i can do things to increase rent and possibly decrease expenses. If I can do that, I'm tentatively planning on selling after x amount of years to trade up. Also hoping that they appraise well so I can do some cash out refinancing, but that remains to be seen.

If you want that spreadsheet, it's reasonably easy to make but I'm also happy to share it. Just let me know