All Forum Posts by: Hart Pearson

@Jay Hinrichs Looked it up. Never mind! Haha. Never heard of that term for being on both sides. Thx

@Jay Hinrichs Cool! What do you mean by “double ended”?

@Jay Hinrichs It’s not tax advantaged. It’s true. But it’s stills spreads my precious capital out a little better than not doing it. I think 30 years from now I’ll remember that more than my 2020 tax returns. Can you think of any point that the increased commission would be an issue? I imagine it’s been a long time since you had to worry about Fannie Mae requirements. But what about for portfolio or commercial loans?

@Aaron K. Seller net is what matters as far as ethics. If I give you 120k for a 100k house and charge 20k commission or 100k and no commission there’s no ethical issue. Your nets the same. The point is not to get a deal from the seller. It’s to help them with time and convenience and minimize my outlay. Seems like the term “increased commissions” is setting of red flags here. But I think unnecessarily so.

I hate cars... particularly for young guys. I can never understand the logic behind being scared to loose money in investments and being certain to loose money on a car. The opportunity cost of that 45k over the next 50 years is massive. Why not start making some bold steps towards not being to tied to the operations of your dental practice? Take the money and go produce some cashflow, its more addictive than cars. It's cooler and less "typical." Ever notice most dentists drive nice sports cars? I think it's because teeth aren't much fun so they get their thrills on the commute... so produce some cashflow and get rid of the commute! You've got a ton of discretionary income, but if you waste it on a car then you might as well never have made it. 

@Shiloh Lundahl I'm curious Shiloh... why the 12% notes in second position vs. a washout refi to replace the 1st position? More cash up to a higher LTV? Easier process I'm sure, just seems pricey.

https://www.biggerpockets.com/... I'm curious Shiloh... why the 12% notes in second position vs. a washout refi to replace the 1st position? More cash up to a higher LTV? Easier process I'm sure, just seems pricey.

https://www.biggerpockets.com/...

Lets assume the seller will be fully competent and sound! In my previous deal, they were a sharp young couple. Their incentive was to do what it took to contract their dream home and that meant a time crunch to get a contract, plus the hassle of listing prep and showings for a busy family. It's a fairly logical deal for the seller. They're getting a pretty fair net. This isn't a strategy to steal great deals from little old ladies, it's a strategy to reduce the amount of capital left in a single family rental... so I can buy more single family rentals... If we put 20 down on every rental we've bought in the last 5 years we would have invested over 500k in cash not counting renovations. That's a real elephant to eat. So I deeply care about how much cash a house is going to take and how quickly the cashflow makes up for it. (read COC return)

https://www.biggerpockets.com/...Hi Matt! To keep you off of the mortgage application and do 10 and 10 she would need to be a stand alone applicant. If they can't document enough income for her then they'll need you to sign with her. But then it will count as a loan for each of you. (like one house is using 2 of your combined 20 slots). Does her income show on your tax returns? if she's been subbing for a couple of years then they may work with that number. And yes, Fannie allows them to use 75% of the estimated rental income that the appraiser gives them to qualify you for that loan. Just be sure that the lender is on board with it (some lenders have their own rules called overlays, find one that doesn't) and I generally discuss this with the appraiser as well so they know that the estimated rental value number is important to me and my approval.

To sum it up... IF your wife has no debt AND they give her credit for the estimated rental income, then it's possible she could be approved with no working income!

I'm wondering if wholesalers and off market campaigners are losing deals due to the recent surge in ibuyers like Opendoor, zillow etc..? Are any of the sellers you talk to mentioning these?