All Forum Posts by: Christian Malesic

So, if you get nothing else from this thread it should be this. Be prepared for when the 15 years are up. Either pay ahead or stash money away. All may be just swell when that time comes, or it may not. You have a bunch of time to prepare. If you prepare well and they re-finance OR you can re-finance eslewhere, you will be that much closer to financial independence - all of our goal.

Ram,

Not as I understand the history. During the Great Depression loans were called that were not being paid, but had a loan call provision. They are not as popular in loan docs today as they were then. There were also a lot of stock margin calls, which bared their ugly head again in the late 80s and early 90s during the dot com blow ups. It usually comes down to over-extending and poor business.

Now, I am not the great student of history as some are around here. That said, I believe my memory from my college studies is fairly accurate. The Great Depression was a culmination of a number of factors. One of them was what he saw during the dot com explosion. Twenty years ago, that was really the only thing going on, so the country survived swimmingly with only a few of the most greedy taking a bath. Today, we face a similar culmination as our grandfathers saw 80 years ago. Business financials are key for the investor today.

The falling dollar, unemployment on the rise, the mortgage crisis, lack of faith in our government officials, tightening money supply by the lenders, etc. etc. etc. all lend themselves to a scary future outlook.

Again, I firmly believe that solid business management will see us through. The days of the flip and quick wholesale may be temporarily over (though some here are still doing well), but the buy and hold strategy still prevails. A good entrepreneur will always see the upside to make tons of cash – gold, today for example. Or, to stay in the REI world: foreclosures, short sales, sheriff's sales, and REOs.

This is why education is key and BiggerPockets is continuing to grow.

I feel your pain.

Roof leaks are the worst. They are so hard to track down to determine where the leak is originating. It seems as though you have a plan.

It is very common. I do it all the time with my properties. We call it the shell game.

See this thread to get you started then ask further questions here:

Using equity to get more properties

Why not just stay there? Pay down principle and prepare your plan for future investments.

We formed a corporation instead of an llc.

Our name is: The Malesic Group, Inc.

On our letterhead, checks, business cards, etc we put the words "Property Rentals" underneath the name.

This may be unpopular, but it sounds as though the courthouse (the offices you list) needs a visit from you.

Save up your vacation time and road trip.

I have never had the problem you are having, but then I always went in person.

BiggerPockets is full of such discussions.

Read this forum, Starting Out, General Real Estate Investing, and even a little of Investor Psychology to get the answers to your questions.

You may even want to try the Search function at the very top line of this web page..

There are a lot of assumptions made in the above posts. Let us get down to basics.

The most normal investment property loan has always been a 20 year commercial loan that is not callable with interest re-adjustments after each 5 year period.

The new hot loan (from the lender's point of view) is a balloon loan; whereas, the loan is due at some period of time earlier although it is amortized over the 20 year period. IOW, the payment would be the same as if it was a 20 year loan, but the loan might 'expire' in 7 or 12 years before the balance is ever paid off with the balance due at that time.

Now, when the banker is 'selling' you on the loan, he will say that the bank will probably just renew the loan when it comes due (and maybe they will); however, it has the same effect of calling it as they can choose not to renew.

Read the loan docs very carefully to ensure you understand the product they are pushing.

"take-over" is surely a very strong way of phrasing things.

I can certainly say NO... NO Take Over.

It is more of a bail-out at taxpayer expense.