I own 18 rental homes which totals 32 mortgages. My mid range credit score is 719. What is my best strategy to I can continue to acquire property??? My stated goal is 1 - 2 homes per month but get concerned with mortgage companies worrying about how many home I own.
2007-01-06 14:08:50 · 5 answers · asked by covenantglobal 2 in Business & Finance ➔ Renting & Real Estate
What most people do is to transfer the properties into a trust. Have the trust make the payments. Then send proof to the credit bureaus (spelling?) that the trust is making the payments and have them remove the mortgage information from your credit report. Now when you go to qualify for a loan, the mortgages do not show up and there are no issues. The best part is that the lenders cannot call the loan and you look like a renter.
You might want to consider creating some type of entity, such as an LLC, to manage the trust. Hell, some people even create a S-corp to manage the LLC. It all depends on your investing goals. You should talk to a CPA and a lawyer who specializes in real estate investing foradvice.
Regards
2007-01-06 20:11:29 · answer #1 · answered by Anonymous · 1⤊ 1⤋
You have stated that you have 32 mortgages on 18 pieces of property .. YIKES .. that is almost 2 mortgages on EACH Property ..
Now even with a decent Credit Score .. the potential loan company is definitely going to look carefully at your record of payments on all these mortgages ... and the fact that you have so many ... we all know and acknowledge that the more outstanding debts you have .. the higher the balances, and just keeping the minimum (the stated payment) paid .. this is going to be an ITEM OF CONCERN.
Given that the housing market HAS COOLED, and the fact that prices of existing units are starting to fall in most markets .. (and we don't know what the mix is for you in this question -- single family, duplexes, apartments/townhomes/condos ... what?) .. then that all can change the answer here.
2007-01-06 14:26:51 · answer #2 · answered by sglmom 7 · 0⤊ 0⤋
you're a first time customer - you do not understand sufficient about procuring a house to characterize your self. Have a Realtor characterize you. brokers have despatched you listings - why do you've more suitable than one agent doing furnish you with the outcomes you want without objective of them getting a pay verify? i got here upon one which i appreciate - you've already considered the abode? the seller/itemizing agent might want to not favor to percentage a fee anymore. Who directed you to this abode? mortgage officer insists on seller paying your down fee - you should be dealing with national. they're attempting to get offered out, and with the "money laundering" down fee assistance courses (customer receives "provide" from non-earnings company after the seller "supplies" the money plus a fee to the non-earnings) the shoppers can nevertheless have reserves left after the acquisition, so the deepest loan being offered looks extra appropriate to the investor procuring it. locate yet another FHA mortgage officer. don't have the seller pay for stuff (you should strengthen the fee for that BTW) that you'll pay for your self.
2016-12-01 22:47:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Holy Smokes! You have too many mortgages, stop acquiring and start selling!
2007-01-06 14:17:37 · answer #4 · answered by KC 4 · 0⤊ 0⤋
As a Broker myself, I would pull equity from the others. Be carefull. You can make millions depending on where your at. You can also lost everything.
2007-01-06 14:21:35 · answer #5 · answered by HairyBack 2 · 0⤊ 0⤋