When it comes to financing I have never seen more changes than I’ve seen in the last year.
First the FHA allowed 10 mortgages, then it was 6, now it is 4. Wow, it is hard to play the game when the rules keep changing. That is why I wanted to write this article. Thinking outside the box is not only a good idea, it may be the only option.
I personally have 28 investment properties. Some I own myself, others I own in partnership. I too have experienced the new loan restrictions, but instead of letting great investment deals pass by, I found others who could get the financing and partnered up with them. This is how it works: We split the cost of the home and rehab and pay cash for that. Then my partner gets the loan. That helps me in two ways: 1. With the loan, we get back all of our initial cash investment, so we have no money in the deal. 2. ½ of something is better than ½ of nothing. My partner also gets the tax benefit of owning an investment home.
Another way to make financing happen is with business credit. I am currently in the process of building business credit myself. The first thing to do is to create an LLC. Next, open a checking account with that LLC. (Make sure to bring your articles of incorporation with you.) Your business banker will assist you with an Employer Identification Number (EIN). Once your checking account is open, register your business (or LLC) with Dun and Bradstreet. Then, you will need at least 4-6 vendors to report to your D & B number. Also, remember to run all of your rental expenses and revenue through your LLC. This will establish a credit score for your company. Once you have done that, you can then go out and look for commercial credit lines.
Lastly, keep in mind that the financial market is ever changing. I am confident in time, that things will swing back in favor of investors. After all, we are what keeps the economy rolling.
Meanwhile, we are constantly looking for new ways to finance and need your input always on this matter.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
First the FHA allowed 10 mortgages, then it was 6, now it is 4. Wow, it is hard to play the game when the rules keep changing. That is why I wanted to write this article. Thinking outside the box is not only a good idea, it may be the only option.
I personally have 28 investment properties. Some I own myself, others I own in partnership. I too have experienced the new loan restrictions, but instead of letting great investment deals pass by, I found others who could get the financing and partnered up with them. This is how it works: We split the cost of the home and rehab and pay cash for that. Then my partner gets the loan. That helps me in two ways: 1. With the loan, we get back all of our initial cash investment, so we have no money in the deal. 2. ½ of something is better than ½ of nothing. My partner also gets the tax benefit of owning an investment home.
Another way to make financing happen is with business credit. I am currently in the process of building business credit myself. The first thing to do is to create an LLC. Next, open a checking account with that LLC. (Make sure to bring your articles of incorporation with you.) Your business banker will assist you with an Employer Identification Number (EIN). Once your checking account is open, register your business (or LLC) with Dun and Bradstreet. Then, you will need at least 4-6 vendors to report to your D & B number. Also, remember to run all of your rental expenses and revenue through your LLC. This will establish a credit score for your company. Once you have done that, you can then go out and look for commercial credit lines.
Lastly, keep in mind that the financial market is ever changing. I am confident in time, that things will swing back in favor of investors. After all, we are what keeps the economy rolling.
Meanwhile, we are constantly looking for new ways to finance and need your input always on this matter.
--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/
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