All Forum Posts by: Jim Blackburn

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@Eric Martinez  - 

Also, this is good article you should read.

https://www.biggerpockets.com/insights/articles/real-estate-markets-july-2020

@Sunny Er - 

When you purchase home, you get second home interest rates which are same as primary residence rates and significantly lower than rental property rates. Also 10% down vs 15% minimum for investment. When you sign your mortgage note, you sign an intent to occupy for 12 months.

If you rent it out and are not occupying it, technically, you are violating the note you signed at closing and the note can be called by the lender. Be careful, there may be a lender detective secretly watching you from their parked car for 12 months, just waiting for that opportunity to catch a renter on video walking into your second home!

If you later decide to rent this home after 12 mo. occupancy and claim rent on the tax returns, then if you every try to refinance this proeprty in future, the rent income on schedule E will tag this property as a rental property and you will get rental property rates.

Upside: You can use the rental income on schedule e to qualify towards your next real estate purchase.

@Eric Martinez - Buy in Phoenix or Las Vegas.  Nuff said.

@Kris Gupta - 

Blanket loan to finance all in LLC and remove all from personal credit, then you free up personal credit for 10 more properties.

Downside: Blanket loans are commercial loans. Rates are higher than residential loans and there are no 15 fix or 30 fix options. Only 5,7,10 arms and usually have origination points.

Upside:  So what... what has higher value to you:  A) save a 1/2% on the rate or B)generate 5% appreciation on millions of dollars in additional real estate? 

@Chetan Patil - 

Typically for commercial properties you will subject to 70% cash out (sometimes 75% of some portfolio banks) of the purchase price for the first 6 months (some banks have 12 month seasoning) before you can cash out based on the higher improved appraised value. 

@Sergey Grunt - 

If your LLC has established credit, and you want to apply for a business loan, then sure you can apply for a loan through LLC. Rates are higher than residential conventional loans and there are no 15 fix or 30 fix options. Only 5,7,10 arms and usually have origination points.

If your LLC does not established credit, then you need to qualify personally with personal income and credit, and go on title personally as the owner. Fannie Freddie does not lend to businesses. They want people liable for paying them back. Make sense?

Secret: You can quit claim deed the title to LLC after closing to protect yourself from liability. :)

It's a great day to begin the refinance process! Get a quote without receiving a thousand calls plus download your free refinance guide!

www.MortgageManJim.com/RefinanceQuote

@Amy Canfield

10-15%