All Forum Posts by: Shaun Weekes

@Shaun Weekes Citadel is still funding owner occupied loans in process so they are not closed down. How can I get my earnest money back? I am in breach of contract past my contingencies.

Does have mortgages on your investment properties effect your ability to get a mortgage for your personal home?

Currently renting and concerned that if I have a few mortgages on my rentals that I won’t be approved for a mortgage for my own house, or be approved for much less.

Is this a concern? How do banks look at that debt on investment properties?

I am new to real estate investing. I am looking at buying my first property soon. I have listened to all the podcasts and read several books. From what I have gathered is that 1-4 units is considered a residential loan and 5+ units is commercial. I have talked to 7 local banks and they have all told me that anything I would be buying would be considered commercial since its an investment property, including a single family house. With it being a commercial loan the longest term I could get is 20 years and the interest is only fixed for the first 5 years. How does everyone else get a 30 year residential loan on 1-4 unit properties.

Guys/Girls, I really need help....

I recently quit my job to do real estate full time. I'm about to have my RE license, and we also have an LLC with our property income flowing through it. So My wife makes $60,000+ at her job and we also have 3 cash flowing rentals. These rentals don't just cash flow a few hundred, they cash $1000+ Profit each and every month like clock work. Each one was house-hacked. Bought one, lived in it for a year, then bought the next one and then moved. Its been a year + a few weeks now so we are ready to get the 4th.

So I talk to my broker to get the standard pre-approval letter, and she cant give me a loan for anything, saying that our DTI is 128%. I've tried a dozen banks and they all say the same thing. What is happening is that because the last house we bought doesn't have 2 years worth of rental income, they have to count that house mortgage against us, but don't count any of the rent.

So in a nutshell, my 3 incredibly profitable cash flowing rental properties are killing me in getting another mortgage. This doesn't make sense to me, and I'm stuck. Without my income from my job, her income is not enough to be able to get us the 4th mortgage. On top of that, everyone is telling me I need 2 years of self employment income before that will count for purchasing power, and the creation of the LLC is trapping me to where lenders wont count rental income. Nobody seems to want to lend for a new business.

Is there anyone who can provide me with any sound advice on how to move forward? I could just sit on my hands and wait 6 months for my properties to pull in enough cash to put a down payment on a house, but I want to go go go.

So my question is as follows: How do I "Afford" to get my next mortgage? I want to HELOC my house which I can take out $50,000 to buy an investment property, but they require income verification for that too. A business needs 2 years of income to get a business loan. I really seem to be stuck between a rock and a hard place, and I'm determined to break out.

Help is appreciated,

Matt Nico

 What do you mean they saved me a lot of money?

income is 2700/month.  Mortgage would be about 2100-2200.

For the last few months, i've been VERY eager to start my vision of becoming financially free through the house hacking method. I've listed to MANY BP podcasts explaining how people buy a duplex or 3-4 unit property with an FHA loan, 3-5% down.... NOT ONCE have I heard them mention the "self sufficiency" rule!!!

The last few months i've been searching for a job in a specific area of my state to make sure i'm putting myself in the best potential area to make a house hack work on a 3-4 unit property. I found an excellent 4 unit... Cashflows $500 a month with me living in the 4th unit....still doesnt pass the self sufficient test per FHA rules....can't find much better around here. VERY frustrated i've never heard of this in all the hours of podcasts on house hacking i've listened to.

I am going through something similar.  Started my refinance with them 6 months ago!  They are still asking for documents.  I will likely take my business elsewhere.

How do i convince my local lenders of this?