Buy Foreclosures
NO Banks, Credit, or $
FREE Kit NOW!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
July 23, 2019, 08:36:24 am
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Buy Foreclosures
NO Banks, Credit, or $
FREE Kit NOW!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
July 23, 2019, 08:36:24 am
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Click Here to Register for the Discussion Forums

Author Topic: Maxed out at 4 mortgages = buy as LLC?  (Read 23505 times)

Offline NJbird_dog

  • Member
  • ***
  • Posts: 399
Re: Maxed out at 4 mortgages = buy as LLC?
« Reply #15 on: May 27, 2018, 01:16:35 am »
Hey Michael.. are you still on this forum? I'd like to do a 1031 exchange with my current portfolio and your method of buying land is genius - but what type of personal income verification will the bank require from the borrower or will it be primarily asset-based? I took a quick look at your website and if 1031 exchange is a service you provide, I would love to chat. I live in NJ. Thanks
 
The key to a loan like this is to look at it from the perspective of the bank loan officer.

He has 2 concerns:
1.) What questions and objections do I face when I take this application to the Loan Committee?
2.) Will this damage my prospects/evaluation if the bank has to take this property?

Remember, it's not his money.
He's only worried about his career.

I think that land is better than a house because:
1.) House values are very much a matter of opinion; there are dozens of variables; values can fall severely with economic conditions; they are a major headache if the bank has to take them.
2.) Land values will be more standard, a certain dollar amount per acre in the region, depending on the location and state of development; there is virtually no holding cost for land other than property taxes, and those can be reduced drastically in Texas with a Timber of Ag Exemption, so there is no major headache for the bank if they have to take it; land prices can actually go up in a bad economy because investors look for a safe place for their funds.

I've done this with 40- to 80-acre tracts of land with standing timber, as well as with SFRs.

I much preferred the land deals, and so did the bank.  They were simpler, safer, quicker and cheaper.

Let's face it, you are going to have your equity somewhere.
Why not consolidate it in a tract of land, set up a line of credit loan, and be able to write a check on your equity anytime you want without so much as a phone call to anyone?

I hope this helps.

Good Luck.

Michael Lantrip


 




SMF 2.0.15 | SMF © 2017, Simple Machines