All Forum Posts by: Account Closed

This was said before but worth repeating. The 150k AGI limit prevents you from using passive activity losses to offset ordinary income but does not limit your ability to use depreciation as a tax shield to arrive at taxable income on a rental property.

Learn and study the latest Fannie Selling guide (available online). Most conventional lenders (non-portfolio lenders) use the guide and desktop underwriting engines (DU/DO) to prepare loans for delivery into the secondary market. The guide specifies requirements like LTV, DTI, income, and almost every other factors considered in a loan application. If you are trying to get a complicated loan through and the stats seem to meet the requirements of the selling guide, but you officer is telling you it was rejected, ask to see a copy of the DU findings report. I have rescued countless deals b/c an officer didn't input data correctly or was accounting for items incorrectly. I work with an experienced loan officer but end up holding their hand through most deals as their are countless ways to screw up accounting for certain items in the underwriting engine; for example, assets, income, debt, reserves.

If you are thinking about pursuing a Masters with a RE focus I would consider Ross at UofM in addition to Stern. They are a big feeder school for NYC development firms, especially the Related Companies (the founders name adorns the UofM b-school). I tend to think of Stern/Ross in the same breath, with Stern having a focus on finance/banking, and Ross grads excelling at consulting. Many of my classmates have worked on the Hudson Yard project by Related in some capacity as consultants while in school (as part of a mandatory capstone project) or in a full-time or internship role.

Truth in lending disclosures are legally required to outline the APR. It seems like you would have caught a 60% APR in writing when you signed the docs if it were true.

Originally posted by @Al Mcbee:

Originally posted by @Account Closed:

Most cities will have a register of deeds office where you can look up recording instruments like a mortgage. Many counties have these search features available on-line. A visit in person and a quick chat with a clerk could help you locate the mortgage document too.

This will tell me the mortgage, but will it tell me the balance due?

 You can just do the math to back into the balance owed. The note will have an origination date with the interest and terms. Use an amortization calculator (or in excel) to figure out how much principal would have amortized since inception.

Most cities will have a register of deeds office where you can look up recording instruments like a mortgage. Many counties have these search features available on-line. A visit in person and a quick chat with a clerk could help you locate the mortgage document too.

I think you may be incorrect in your assumption that everyone would love to refer their GC to an anonymous poster on this message board. There is reputational risk in this type of activity. I agree it would be helpful to add some detail in your profile too. Maybe members would feel more comfortable they are not giving a referral to someone in the Detroit outfit !

@John Blackman A very salient point regarding attic space on a third floor or above a garage. Have you observed in your local market that discerning buyers may discount these spaces and not consider them as true GLA? These spaces are common in my local market. I agree it's cheap space and almost a no-brain er on investment value; however, it seems in my market a buyer is not willing to pay a full price/sq foot for the incremental space. For example, a market that commands $300/sq foot-- an astute buyer would not pay a full $90,000 for 300 sq feet of incremental space in a 3,000 sq foot house but assign a lessor value. I am curious if you have been able to make any observations or quantity what discount may exist if any. 

@James Park  Interesting post. I'm an ex big-4 CPA working in industry and see the same trends with affluent people in their circle of influence; relying less on financial advisers or estate planning attorneys and more on their accountants. I noticed in your profile your a Ross grad. Go Blue! I'm a current Ross student sponsored in an executive style program.

The more transactions I have completed in my lifetime the more I discount a real-estate salespersons service. On the buy side- how hard is it to put together a purchase agreement from a boiler plate template provided by their local board and fill in some terms? Comparable market analysis for offering prices- thanks, I have that covered too. Once I have a home under contract I will let the lender and title agency take it from there thank-you. On the sell side- how difficult is it to enter clerical information into the MLS, show properties, and evaluate offers? The confidence I have undertaking these transactions on my own came from experience. There are many things that can go wrong in a transaction but I have seen very few deals rescued by a realtor. Not everyone may feel this comfortable undertaking these activities on their own.

Ken - #4 above; builder is making his money on the back end in profit allocated. Charging cost during build.