All Forum Posts by: Spenser Harding

Thanks for your input Aaron, that gives me a little better guidance. Since I put 5% down on my primary, I have only paid it down for a year and a half, so taking the appraisal and appreciation out of equation, I have a loan that is 92.5% LTV. If I were rent it out, technically the bank would have an investment property on its books at greater than 80% LTV. However, I do realize I have exceed the Homepath option for living in it for 1 year.

Need some help. I moved into my house October 2012 and the neighbor next door bought his house about 3 months before that. He is an interesting character who never mows his lawn, infact, he moved a wheelbarrow into his back yard in January and it is now lost amongst the grass. My question is, he left suddenly with all his belongings and cars about two weeks ago. I don't know his name, where he works, or anything. The house is vacant (in bad shape), I see investment opportunity here but am not certain on the best path to take. I listened to the most recent podcast today and it focused on "Subject To" but don't know if this scenario might be the best fit or not. I don't know how to get ahold of the guy to figure out his situation. How can I go about doing find his info via public sources and what would be the best investment strategy here?

Thanks everyone! I guess I am a bit ignorant. To me it sounded a bit funny which is why I came here, but I didn't realize it fell into the fraud category. Yikes! Staying away from that "pro" Ha! Seriously, thank you for the info. I can see now how investors get a bad name.

Working in a bank, I have talked to many mortgage pros on financing options for investment properties. Since I used the conventional 5% down with pmi on my primary residence in 2012, I wondered if it was possible to get that financing on an investment property somehow. As a colleague of mine told me it would only be possible to get that type of financing again if it "clear" I was moving to the newly purchased property and I had a renter lined up for my current home. To me this is a bit of gray area - pertaining to business practices and moral/ethical standards. It is true that investment properties typically require 20% down, however when this option was shown to me by a pro, I don't know whether to follow the lead and label it "creative financing" or stick to the bank rules of the game and apply 20% down. Any BP's members ever heard of this or used this before and what are your thoughts to the ethics of this??? Still being new to investments, I still haven't purchased a property, I want to know if this violates some sort of investor code of conduct and how would a bank even find out??

Hey Gabe, include taxes and insurance. But looks good. Go to the BP file place and download the SFH rental analysis tool spreadsheet, this will give you a more detailed look on returns, vacancy, maintenance, with/without a property manager, etc. give it a look but looks like a good value.

What I have found working in the banking industry is inquiries and new accounts less than 12 months old ding your credit more at the beginning but are quicker to get seasoned because inquiries have the most impact within 12 months and disappear after 24 months. The algorithms that are used to make your credit score are confusing bit I find going to www.creditkarma.com gives you grades on the different categories the algorithms use. I think it only uses transunion. Check it out, it is free.

Welcome! I'm new too. I suggest listening to the podcasts. I stream them from my iPhone on the way to/from work and when doing yard work around the house. Loaded with tons of info with great guest speakers, and of course legit hosts.

Working in a bank, I have talked to many mortgage pros on financing options for investment properties. Since I used the conventional 5% down with pmi on my primary residence in 2012, I wondered if it was possible to get that financing on an investment property somehow. As a colleague of mine told me it would only be possible to get that type of financing again if it "clear" I was moving to the newly purchased property and I had a renter lined up for my current home. To me this is a bit of gray area - pertaining to business practices and moral/ethical standards. It is true that investment properties typically require 20% down, however when this option was shown to me by a pro, I don't know whether to follow the lead and label it "creative financing" or stick to the bank rules of the game and apply 20% down. Any BP's members every heard of this or used this before and what are your thoughts to the ethics of this? Still being new to investments, I still haven't purchased a property, I want to know if this violates some sort of investor code of conduct.

@Dmitriy Fomichenko + @Walt Payne
I did some research on this over the weekend and I face two barriers: 1 being I don't think I can transfer out of my current 401k for a rollover and 2 being I am a SEC licensed individual and since I work for a broker/dealer, they have to sign off on any side jobs I do for conflict of interest. I am able to invest in real estate but consulting might raise some brows. I will report back with my findings.

Hey Ray,

Typically they would want you to send in a purchase/sale agreement on the property you want to buy. I am not a real estate agent nor do I have my license but if I recall correctly, on there it states how the property is intended to be used i.e. primary, vacation, secondary, investment home. ***I would like confirmation from a BP member about this. But it is up to your 401k plan specifically if they need to see the purchase and sale or not. But yes, that is what I was saying about taking a loan term for longer than you plan on working for two reason: 1) lower payments and 2) access to your own money. Once you retire, I think you will have two choices either paying off the loan in full to your 401k or taking the distribution at which time the taxes will be due. You should take into account for how the payments will affect your paycheck and treat it as an expense. I wouldn't sell your property in AZ as it is a potential rental hot bed and you can have a renter pay off the rest of your balance eventually.