All Forum Posts by: Gloria Mirza

I figured out how to secure the loan so that I can claim interest.  Basically, what you do is write up a "deed of trust" thereby making it a secured loan.  In California the document does not need to be recorded for it to be valid so as long as I have the form available if I ever get audited then it should hold up with the IRS.  The only caveat is that if you don't record your deed it becomes subservient to other loans that get recorded.  

I took care of the problems Sunday and they cancelled the contract Monday morning.  I don't think that is what enabled the seller to buy, Hubzu does not move that fast :-).  When you have squatters in the house and a leaky roof, you just have to move quick before the problem gets worse.  I wouldn't say I "fixed" the problems though, just stabilized it by kicking the squatter out, putting in new locks, and putting two garbage cans in the house to catch the water leaking from the roof.  I took a $200 gamble and lost this time.

haha, yeah but it hurts to miss out on a deal.

I figure out what happened.  It turns out they had another offer for 235k and the seller hadn't signed my offer yet, so they went with another offer.  

I am going to do that but first I want to buy another property. If i get the home equity loan on my primary it might make my DTI too high to qualify for an investment loan since the loan on investment properties have stricter guidelines. This way I can buy the investment properties, then get a home equity loan which will let me borrow at a higher DTI.

I borrowed money from my mom to purchase a rental property. I would like to treat the loan as a home equity loan on my primary residence. Currently I pay her interest only payments and we have a very basic written agreement. I plan on sending the IRS a 1099-int for her so that she pays taxes on the interest and I can deduct it. I have done some research online and read that the loan needs to be secured for me to be able to deduct it from my taxes. My question is how do I secure the loan and will it affect my DTI? I don't know if it matters but I am in California.

That's basically the name of the game.  If your first offer on a house was accepted then you're probably paying too much.  Some investors on this board will even do hundred's of low ball offers on different homes in hopes that one of them will be accepted.  Don't just look at the under priced homes.  If a house is over priced and been on the market for a while you might get lucky with a low offer on it.  It all depends on the state of mind of the seller. 

PM me.  I would be happy to walk through a home with you if there is one you are interested in.  Also, I have a home in Elk Grove and one in Stockton that I might be in contract in soon.  If it goes through, you can walk through the property with me when I hire the inspector, as long as you don't mind the drive.  I can let you know when it's more of a sure thing.

You can withdraw from your ira without penalty provided you don't exceed the amount of previous contributions.  So if you contributed 20k to your ira over the last 10 years, you can take that out and not pay penalties.  You would however have to pay taxes on the withdrawal if it is from a regular ira.  A roth ira would not have any tax consequences.  Here is an article with more information http://www.mymoneyblog.com/can-i-really-withdraw-m...

Yes a standard RPA will work for bank owned properties. Banks like to see large EMD deposits, something along the line of 20% of purchase price will do. Also, if you have the stomach for removing either the inspection or loan contingency that would help too. I wouldn't remove both though because leaving one will help give you an out if something comes up while in contract.