Financing and Credit

I have been asked from someone that had recently purchased and S Corp creation whether they should have gone with a DBA. DBA stands for doing business as. If you, yourself, get a DBA you are doing business as yourself but under another assumed name. You have NO liability protection for this. LLC is cheap and can protect you from liabilities.

If you already have a S Corp use it. It does not hurt to have a Corp and use it. It will give a business name to use and will protect you from liabilities.

Some business structures you can also change the way they are taxed. For example if I have an LLC I can have it taxed like an S Corp instead of an LLC. Talk to your professional accountant for this.

I found this very interesting. Thought I would share it.

http://www.dsnews.com/articles/fannie-mae-expands-imminent-default-test-...

Ok, with my situation going on (its in my journal and just disgusting) I was told by someone in the business for 20 years that banks are starting to NOT count ANY rental income on ANY property that does not have at least 30% equity in it. WHATTT??? Does anyone know if this is TRUE and a new 'benchmark' or have any information on it? Now, I KNOW not to believe everyone (or most anyone) in this business, but with the situation I'm in, it would explain a lot.

(It certainly seems to be based on what they did with my ratios)

Hello DG Family,

I know that many of us are looking for banks that will do no seasoning refi loans. I have found one here in Kansas City MO.

Here is the message I received from my local REI club.

Topic: Cash Out Refinancing for Investment Property

Message:

I am hearing we are one of the few lenders that will "cash out" on investment property, and we don't require seasoning. We also offer the Homepath financing with only 15% down for investors, and we are still doing great work with rehab lending.
Ann
Argentine Federal Savings

I hope this information helps some of our DG family:)

Want to borrow on the equity in order to pay cash for properties.

I own a commercial building free and clear and a CELOC would be my first choice, but haven't been able to find any contacts so far. Any leads would be greatly appreciated.

I am a relative who wishes to purchase in the US but he doesn't have a green card, is a non-US national, and hasn't even step foot in the US. Having said this he still wishes to purchase commercial real estate in the US. I know he can do so all cash deals but unfortunately he doesn't have that kind of money. He can put more than 50% down but will have to obtain a mortgage for the other 50%. Would any mortgage company lend to him? If yes, what paperwork would he need to provide in order to get the mortgage started?

Hello Gang,

I have a question. I found a property that is a HUD property. I am finding it none do able to lock down the property with out having 1000 escrow down.

I have already found renters that are willing to fix up the place and move in for some cuts on rent. So everything is good. My question is i have read in the books about hard money loans and ARV loans and wanted to get some advice on them as how others have done them.

Also how they address the question such as how did you ask for the money or what type of report did you give the person loaning you the money?

Thanks for the advice !

A New Perspective Can Increase Your Client List
By: Catherine Wynne

The author has permitted the reprinting and redistribution of this article.

Realtors should look at their clients, not just in terms of buying and selling their personal residences, but also in terms of being real estate investors. You think your clients do not have enough cash to invest in real estate? Think again. Did you know that you could invest IRA, Roth and 401(k) accounts in real estate? Your clients probably do not know this.

Consider asking every client these three questions:

1. Are you interested in buying real estate as an investment?

2. Did you know that you could invest your IRA in real estate using a self-directed IRA account?

Why Good Cap Rates Mean Great Profits In Real Estate
By: Jeremy Cyrier

The author has permitted the reprinting and redistribution of this article.

Many of you may be asking yourselves, "How can I use cap rates to predict real estate investing profits?"

Let's start with defining the capitalization rate.

The capitalization rate is an investment measure that's defined as the ratio relationship (reflected as a percentage) between the first year's net operating income and the purchase price of your investment.

and cut years off your mortgage NOW by refinancing at low rates.

You can cut 6,8 even 10 yrs off your mortgage and keep your payments about the same or even less.

Imagine saving 10yrs of payments.

EX: If your payments are $1000 month x 12=$12,000yr

$12,000yr x 10 yrs = $120,000 savings

8 yrs = $96,000
6 yrs = $72,000