All Forum Posts by: Daria B.

No, I'm not looking for answers completely on this forum and I didn't intend for my posts to give that impression. I just get caught up in the conversations and am interested in learning what others experiences have been and comparing to my own situation. 

I actually have spoken to a couple of lenders here and at first didn't really know what to ask them. I've gotten some ideas from this forum and came up with more questions after my conversation with one lender to find the best fit.

I'm appreciative of those that like sharing. I think it's useful to do knowledge transfer. I've even contributed to some topics myself that I hope were useful.

:@)

"A residential agent has to use very little math (thank God for many agents!). You have a few basic things like commissions, down payments, closing costs, etc. that need ton EM calculate but they are fairly simple and it's the same few formulas over and over."

Why then does the test have questions that may not otherwise be applicable in the real world? The test should be geared toward what the RE agent will encounter in the day-2-day activities.

Perhaps, @Bruce Staynerit's in the context of the post that is driving these conclusions? 

I'm not sure as I am not versed in "portfolio loans/lenders" yet and am trying to learn about them based on what I've been reading from so many others here in the forum. 

I have 2 mortgages, 3 properties and am buying [fingers crosses :)] another this year. I started looking into portfolio because of the combinations of purchases I am considering. After reading a lot of posts in BP, I started venturing down the path of portfolio.

Instead of one property as I purchased in the past, I am looking at duplexes in addition to a SFR. Not knowing what I would end up with based on getting the deal, and wanting to know what financial structure I would need to use based on the deal is what lead me here.

• If it were the duplex (there were 2 that I was looking at) then that puts me at 4 mortgages. 
• If it was finding a SFR and 1 duplex it still puts me at 4.
• And if I could find a SFR and 2 duplexes, well that just pushes me over if all are considered separate mortgages.

It was also the consideration of a conventional bank processing multiple properties, if they did that. At the time I wasn't sure of the mechanics involved with underwriting when presented with multiple properties (ie SFR and a MFR <4).

So that's my story in looking at "portfolio"....

Now, if you state that the only requirement is additional down, I can handle that because I would rather have a lower percentage (4%-5%) than a higher one (6%+) and especially not too much more than required to put down. I don't mind 25% but 30% (:o

Also, I don't do LLC and perhaps that is also the driving factor as I know @Adam Johnsonflavor of financing is "frowned upon" [ can you hear the baby in the GEICO commercial. :o) ] by F/F.

@Brandon SnyderI too am someone who freezes at the mention of math-and my major in college was Computer Science. I made it through but it was a struggle. I had friends that helped but they could do so much. Fortunately, I excelled in my major even though the calculus courses ate me alive.

You just have to find a way to shorten the path of the formulas given to you. I've found there are other ways to get the answer not always in the manner it was "said" this is the right way to solve.

I chimed in on a couple of your posts because I wanted to see, like you, if I could get the answer. Sadly, my answer was not correct for your solution. I had the right answer for another question, lol, it just wasn't your question.

I did however look at the post that someone put in for one of your forum posts of a link to a math site. I found it very informative.

Perhaps you can use that site or another that would give a better break down of the equations and explanations.

I have someone that I can scream out to that helps me when I need it. She is opposite of my in math and is quite good. But it's more than just giving me the answer, it's explained how to arrive at the answer. It takes me time and I eventually get there.

This is what stops me from pursuing an RE license - so I congratulate and commend you for working through your fear.

Good luck to you and I hope you find a way to make this work!

aw come on @Adam Johnsonyoure taking my weekend groove way down. LOL

Ok, so the non-recourse "may" not be in my grasp. There should be a handbook of every possible financial mortgage option.

I have a discussion this week with one lender that offers portfolio loans and will be running these questions by them. The blanket sounded appealing....@(・●・)@

@Craig Wilcoxif you would not mind answering a question. @Muriel Hairquestion  has me thinking of open houses I attended without my agent. :| the person that hosted the open house wanted me to sign a "guest" book and handed me her card. my friend took the card and but didn't sign the book. I didn't sign because I'm just paranoid that way. Does signing acknowledge anything? What if I was interested and went back to my agent and said, hey I found this house. 

thanks and have a great night.....

succinctly put @Matt Devincenzo.

So far I have been sticking to one investment strategy. I did want to entertain doing a flip of all the right things were in place. I see I have more homework to do though before engaging in any deal. Thanks for clearing that up.

Then it's not a complete no-go with Fannie on the >4 mortgages. Is this just with your bank @Dan Schwartz based on your experience with them and what they are willing to "try" for you, or is this with any conventional bank?

I looked at Investopedia.com and found this definition and I understand it to be that the bank takes the property that was put up for collateral (just like "recourse"), but, the lender cannot come after my other assets like a "recourse" loan would be. Even though "credit" is still tarnished in both cases.

Please say yes, please say yes, please say yes.... :)

DEFINITION of 'Non-Recourse Debt'

A type of loan that is secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral, but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. This is one instance where the borrower does not have personal liability for the loan.

@Adam Johnson, @Michael Worley, @Jean G., @Chris Martin, and @Steve Babiak

Thanks all for chiming in I appreciate the knowledge transfer that you are doing.

Yes, I referred to them as quads probably incorrectly and from now on I will just say duplex to not confuse. So, these 2 duplexes are separate parcels and I have no intensions or need to have then be one parcel.

I wasn't sure how the bank (F/F) would view these properties, "as 2 properties but put them on one mortgage or 2 mortgages, thus now maxing to my 4". I know that a portfolio lender would allow them to be put into one "portfolio loan", according to one bank I spoke with, and from what I understand that would be one mortgage because it's "blanketed". I will confirm that. Now, whether F/F looks at this as my having 3 mortgages or 4, as you say I will have to confirm with them. Though I think once I jump that line I will be dealing in that world from that point forward.

Some advise maxing out the 4 first, but, it seems that depending on the deal at hand is what determines which type of lender should be used.

Actually, I wasn't even going down this path until I saw the other property and considered buying 2 rather than just 1. Had it just been the one property then I was going the F/F route because of %rates and the fact that I only have 2 outstanding mortgages.

Low and behold, fate now throws a curve ball (not sure why I felt the need to do a sports metaphor), and now I'm having to learn about creative financing, legally of course.

And @Michael Worleythis is yet another piece to this puzzle. If this is a viable option then it very well may be that FM could be the selected lender, given the number are good:

As for the financing, you can finance Multi Family properties with Fannie Mae but will likely have to go through their small loans program for this scenario. You can have an unlimited amount of Multi Family loans through Fannie (they are non recourse loans).