All Forum Posts by: Samantha Miller

@Jeremy Blevins Curious - are you working a 9-5? And if not, how is it gong for you? If you haven't found a way to cleverly (not illegally, but using a combination of financial intelligence and hard work - note the difference) break from the 9-5, I might recommend spending a little more time on BP.  :)  Thanks!

@Jim Pellerin Thanks Jim! Now let's say I find a great lawyer who can make sure the agreement is sound and legit. Who decides how the shares are split? For instance, if one person is fronting all the capital (i.e. the financial risk), and someone else is putting in sweat equity (time and energy), is that a 50/50 split? Are there any standards that people follow for that part of the decision?

@Stephanie Medellin I think you have a good point, I had the same thought. There's logic in that, but still makes it unfortunate that, even if I did find 2 roommates and all of us combined still fit under the income limits, I'd have to actually add those people to my mortgage documents. Then what if they move out in 3 months, and I find 2 new people - I have to call my bank and amend the documents every time?

Hey BP! How do partnerships work in the real estate investing world? For example, let’s say me and 1 or 2 other individuals want to partner on a flip or BRRRR type of deal. Each might bring varying levels of value, work, etc to the table. Someone’s got the capital, someone’s got the time, someone’s got the experience, etc. Sounds like a great team, but how do you structure it (financially/legally) so everyone gets their fair share? Is an LLC involved? If using some financing, who takes out the loan? How do you ensure everyone is protected from someone walking away with profits? It’s not something I’ve looked into yet so there may be some obvious answers out there, but just wanted to hear from others and get a general idea! Thanks in advance!

@Lee L. Yes, the nutcase who reads the fine print in mortgage documents is definitely expecting a whirlwind romance sometime soon...hahahahaha!! But in all seriousness I agree with your point. If a legitimate circumstance change occurred, I think that’s one thing. Renting is just a separate issue.

@Scott Cheek Let me know what you think when you check it out! Feel free to reach out.

@Jordan Moorhead Agreed. It is move in ready and looks pretty nice, but not brand new reno style. The current owners were pure investors who rented it out, so they made it nice enough for that purpose (and it's an old house, so it had some of that inherent charm) but since I'm not doing roommates when I buy as planned, it might be an opportunity for me to bring it up to par (DIY) with some of the other more renovated houses I've seen in the neighborhood that have sold for $50k more than what I am buying for.

@Kate B. Wow - it's always something, isn't it!? Awesome that you could accelerate repayment and go on to rent!

@Scott Cheek Haha. I'm buying in West Philadelphia. Not only do I keep hearing from various sources that there is great potential here, but I work/live in the area and I see it myself. The college town of UPenn (where I work and attend grad school) is expanding into the surrounding neighborhoods.

@Mike Hurney I'm not looking for tips about how to "get away with it". If it's something I wouldn't post on this forum for fear of someone "finding out", it's not something I want in my real estate strategy. I want to play by the rules, not look for tricks to get around them (unless they are legit/allowable tricks). Thanks!

@Bart H. Something I learned previously, and failed to apply in this scenario, is "if it's not in writing, it never happened". My lender and I definitely discussed this and I told him my plan to rent rooms from the beginning...but...over the phone. Sigh. Not in writing. Never happened. I have no argument at this point. I'm definitely hoping I can switch back to 5% or 10% at this point which I was more than happy to do from the start, but again the lender called one day and said "hey, i found 3% for you!" so I said "great, let's do that!". At that point, interest rates were lower. Now that they've spiked, my DTI ratios might preclude me despite putting more down. I will wait a year, and I still think it will be worth it. But definitely lessons learned = get everything in writing, and don't rely on others (including "professionals") to look out for your plans/goals/best interest.

@Christine Mwai I totally agree with you on the absurdity, and unlikeliness of getting "caught". Nonetheless, they do cite a $10,000 fine and/or 30 years imprisonment for mortgage fraud. They also say they can call the whole mortgage due.