All Forum Posts by: Shaun Weekes

A borrower who is paid $14.50 per hour and works 30 hours per week, received __ per month?

A. $2320

B. $1885

C. $1740

D. $2500

So according to the instructor, the answer is B and the math they did to get $1885 is 14.50 x 30 x 52 / 12 = 1885

But the answer I got was $1740. I did 14.5 x 30 x 4 and it gave me 1740. So how am I wrong?

And where did that 52 come from ?

Hi all - buying our first investment property (two partners and myself). We are based in LA and will be buying in the midwest. Purchase price will be between $50-75k.

Question: What do people recommend - hard money lender or traditional mortgage?

Our Goals: Purchase by May, if not before. Purchase single family home or duplex with minor renovations needed (if any). Buy and hold. Location: Midwest (looking at Kansas City, Indy, Cleveland, St. Louis, etc.). Would like to have the property in an LLC for liability purposes. 20% down is our plan.

I am open to either and see the benefits to both. I am not fearful of HML as I've interacted with them in my real estate law work off and on for my clients. The traditional mortgage with a bank or credit union is appealing because of the stability but also like the flexibility and speed of HML (such as buying cash only homes). Your thoughts and tips would be appreciated.

Bonus question: LLC process. I can start the LLC on my own and write the operating agreement, etc. but haven't researched fully on buying the property in the LLC name or buying in our names then transferring it into the LLC. I know to look out for loan rules such as due on transfer clauses etc. but further advice would be great. Thanks!

 

Hello BP family,

I currently own two investment properties free and clear. One is a duplex and the other is a SFR. I have an opportunity to purchase 4 additional properties from a fellow investor that has recently turned 80 and is ready to liquidate. I am thinking that I can leverage one or both of my properties as collateral to acquire a loan for the 4 without a 25-25% down payment. Or should I transfer the rentals to my LLC and cashout refi/HELOC to acquire the down payment? Lastly, will I be able to acquire a loan in my LLC's name considering my personal DTI is probably going to be out of whack with this additional loan.

Ran into an issue with financing. We got an offer accepted for 132K for two SFHs we plan to rent. Our lender won't do one blanket loan and with the required 20% down payment, it drops the value of each loan too low and they won't work with us. Our lender said other Banks in the area probably won't help us either. Hoping to solve this problem quickly with the help of BP! 

The goal is cash flow, so longer terms are better for us. Also if it helps, the asking prices were $70 and $80K before we got it down to $132k. 

Thanks in advance! 🤞🤞🤞

I was pre-approved for a loan, 2 days before closing underwriting denied me. They requested me to put more down, but down my interest and pay an initiation fee. Is it worth it or should i just take the loss and loose my earnest money?

I ran into an interesting issue today. A property has been on the market ~70 days. It looks great. The location is near a food/shopping center and the schools in the area or the best. I went and toured and couldn't see what the issue was. My real estate agent got back to me to let me know that over 15% of the homeowners are behind on paying their condo fees which changes the lending requirements. I believe it requires a higher down payment and no FHA or VA loans are accepted. Just conventional. I imagine this would be a nightmare situation for the seller as it eliminates many potential buyers.

Curious to know if anyone else encountered this or if there's a way around it.

If I start a corporation to collect rental income and there is 10,000 left after all expenses (profits) at year end , how is that taxed?

On my personal taxes?

Is it taxed separately before I take it?

Is it part of my MAGI I report to the IRS?

Can the corporation just retain the profits and pay taxes on it to keep it off my MAGI?

Thanks

@Corby GoadeGoade Great advise corby. i'm coming up to the 6 month rule anyway. They are making it seem as though it is standard conventional refi? no mention of 75% LTV. what i'm not looking forward to is another 30 days of explaining my finances and rentals to the under writer. my previous loan was great. bar rate 4.65% $1700 all in fees. small loan amount. but wondering if i could have done this a lot earlier?!?