Answers (34)
- stilen
- Contributions:16
UPDATE: lol looking back on this thread a better question would have been "fastest way to get a house" which is what i really wanted all along instead of a mortgage. so since today nothing has really changed, iv been working, saving my money, and slowly been building my credit. then a mortgage broker gave me a call about i house that i might be interested in, i was just thinking "sure sure i wont qualify," but when i found out the seller was moving next month and was going to stop making payments and let it fall into foreclosure, i sensed a motivated seller and after making plenty off calls and a little bit of work...
im a home owner under a warranty deed, and the property makes me
-$1800 (240k/280k @ 5.5% fixed, mortgage/tax/insurance)
-$900 (heat/water/cable/fathers management fee)
+$4000 (average rent of $400 w/ 10 rooms)
=$1300 net profit
thank you zillow advice community
im a home owner under a warranty deed, and the property makes me
-$1800 (240k/280k @ 5.5% fixed, mortgage/tax/insurance)
-$900 (heat/water/cable/fathers management fee)
+$4000 (average rent of $400 w/ 10 rooms)
=$1300 net profit
thank you zillow advice community
- Trend Services
- Contributions:41
hey justin, stop falsifying your reviews. all were added within a day of you joining zllow. please. also, take my home off as listed for sale. it is not and i never even met you, but you obviously are shady. i know you are just trying to drive traffic to your business. i have sent you numerous requests for this. do it now.
- Justin Ruzicka, "FortMyersRealty"
- Contributions:39
Silen,
With an income of $35K, you need to be purchasing a house for $150K, w/ out HOA, $120K, w/ HOA...simply put: monthly income x 35% = mortgage payment $1020 housing expense (PITI). I also second the question as to why is your Father Not a part of this process who seems to be an expert?
With an income of $35K, you need to be purchasing a house for $150K, w/ out HOA, $120K, w/ HOA...simply put: monthly income x 35% = mortgage payment $1020 housing expense (PITI). I also second the question as to why is your Father Not a part of this process who seems to be an expert?
- Pasadenan
- Contributions:25971
Stilen -
Just wondering, if your dad has so much experience being a landlord, why don't you ask him to explain the math to you? Obviously, the multiple experienced loan officers that told you like it is, and people that have been in the ownership and landlord business, and renters have tried to explain the math to you, and you are just not seeing what they are saying. Don't rely on the Real Estate agents; most of them don't understand the time value of money either, nor how to make a viable business renting properties.
A big warning, though you can find thousands of people that will be willing to do a lease purchase contract, they will all charge more per month than the equivalent rent, and you are responsible for all maintenance on top of that, and they will take the property back at first opportunity when you miss your payments. Under some limited conditions, lease purchases make sense, especially if already a tenant that pays regularly and doesn't want to move but short a down payment, but otherwise, in an economy like present, it is a bad deal for all involved, but definitely better for the seller than the buyer. There are already many good threads on this topic on Zillow, so use the keyword search box at the top of this page and start reading!
Also, if you really want to get into rental investment and property management, get a side job for a management company and start doing the maintenance and management for someone else's investment so that you can learn from their experience and mistakes without risking your own money. You really need at least 5 years of construction/maintenance experience in some form or other before trying to do it on your own.
Besides, if you are buying to rent it out, where are you living in the meantime? There are very good reasons that mortgages for owner occupied properties are at better rates and terms than mortgages for non-owner occupied.
Just wondering, if your dad has so much experience being a landlord, why don't you ask him to explain the math to you? Obviously, the multiple experienced loan officers that told you like it is, and people that have been in the ownership and landlord business, and renters have tried to explain the math to you, and you are just not seeing what they are saying. Don't rely on the Real Estate agents; most of them don't understand the time value of money either, nor how to make a viable business renting properties.
A big warning, though you can find thousands of people that will be willing to do a lease purchase contract, they will all charge more per month than the equivalent rent, and you are responsible for all maintenance on top of that, and they will take the property back at first opportunity when you miss your payments. Under some limited conditions, lease purchases make sense, especially if already a tenant that pays regularly and doesn't want to move but short a down payment, but otherwise, in an economy like present, it is a bad deal for all involved, but definitely better for the seller than the buyer. There are already many good threads on this topic on Zillow, so use the keyword search box at the top of this page and start reading!
Also, if you really want to get into rental investment and property management, get a side job for a management company and start doing the maintenance and management for someone else's investment so that you can learn from their experience and mistakes without risking your own money. You really need at least 5 years of construction/maintenance experience in some form or other before trying to do it on your own.
Besides, if you are buying to rent it out, where are you living in the meantime? There are very good reasons that mortgages for owner occupied properties are at better rates and terms than mortgages for non-owner occupied.
- Dan, "the_country_hick"
- Contributions:4827
When I said earlier to go to school it was simply to get a better paying job. I do know it is possible to attend 4 years of college and make less than you do now. If you choose the right major (the hardest ones) you are likely to make much more money.
If you had said you wanted to buy a $115,000 house I would not have mentioned going to school. That should be possible at your present income. However, if you want more to get it you need to earn more. You present income is great for an 18 year old. Many much older would like making that much.
The problem is income to cost ratio. You simply want to much (for house price) to afford that at your present income.I know what that is like. I sacrificed a lot and saved my money for a lot of years. NOW I can borrow less for a mortgage than I have saved up. For me to buy a house with 3.5% down would put me in a similar place as you are now. Unable to afford what I wanted. But with years of financial sacrifice I should be able to buy what I want without a mortgage within the next 2 years. I could now but I think prices will drop even more most places.
I did see one house. It was in a small town with over 40 acres. A huge house that is unfinished. I think it could be considered a mcmansion. Apparently they ran out of money before it could be completed. I am considering finding out more and maybe turning it into a bed and breakfast getaway place. Maybe not, but I have that option now because of past financial choices I made.
If you took 4 years of saving like crazy you would be surprised just how much you could save. This means self control. No movies, no eating out, no to a lot of things. Then in a few years when you want to buy it just might be for cash with no mortgage at all.
If you had said you wanted to buy a $115,000 house I would not have mentioned going to school. That should be possible at your present income. However, if you want more to get it you need to earn more. You present income is great for an 18 year old. Many much older would like making that much.
The problem is income to cost ratio. You simply want to much (for house price) to afford that at your present income.I know what that is like. I sacrificed a lot and saved my money for a lot of years. NOW I can borrow less for a mortgage than I have saved up. For me to buy a house with 3.5% down would put me in a similar place as you are now. Unable to afford what I wanted. But with years of financial sacrifice I should be able to buy what I want without a mortgage within the next 2 years. I could now but I think prices will drop even more most places.
I did see one house. It was in a small town with over 40 acres. A huge house that is unfinished. I think it could be considered a mcmansion. Apparently they ran out of money before it could be completed. I am considering finding out more and maybe turning it into a bed and breakfast getaway place. Maybe not, but I have that option now because of past financial choices I made.
If you took 4 years of saving like crazy you would be surprised just how much you could save. This means self control. No movies, no eating out, no to a lot of things. Then in a few years when you want to buy it just might be for cash with no mortgage at all.
- Alex Rodriguez, "TopBrokerAlex"
- Contributions:14
Stillen, run and Ad in your local newspaper and you will be surprised how may people may call you. Or use Websites such as https://www.lease2buy.com/index.php to post your ad. At one time or another you may have to invest a couple of dollars to get the information or contacts you need. Forums like this one are very limited in nature....At the end of the day, most of the "Experts" you will find here are agent prospecting for new clients and/or trying to "Build" their online reputation. Or others like me, a succesful agent who is just trying to learn about social media without suggesting to be a foremost expert on a given subject, and at no cost. Thanks!
- stilen
- Contributions:16
alex, thank you i do understand how lease-to-own deals work and in my case that type of deal would be a god send, unfortunately i am looking for a very specific kind of property and with a very specific kind of financing it feel like the two will only meet when i witness a solar eclipse, and from the linked site it does not require membership for info but does to view the actual listings, this is very common for related sites, but is this always necessary?
- stilen
- Contributions:16
socal-engr, where can a learn about the RE markets? much material out there is out-dated especially since the recession causing toxic housing cluster f@&*, much material is out of state, and even more material out there is so obviously a marketing scheme to to lure victims into snake oil deals, i have a very hard time determining quality info unless im talking to people face to face, which i have with many mortgage specialist that i have made numerous plans with to receive a loan of ~300k in 12-24 months, of coarse there is a conflict of interest because they do make a commission most of the time, on the flip side there job is secured normally based of customer satisfaction, the only realistic conclusion iv come to is that the only thing that is going to get me house sooner is a angle investment from somebody but im trying to remain open minded by forum'ing and continuing to talk to people
- jjlen
- Contributions:19
You say abut 45k gross. At that income, you can't qualify for a 300k mortgage unless you have about much more than 3% down. That's because your income is too low for that kind of house price.
So if you want a quick way to get a mortgage, lower your housing standards. Otherwise, there is no quick way. It will take not just getting some credit history, but also saving enough to have a substantial down payment. In this market, mortgages are not easy to get.
So if you want a quick way to get a mortgage, lower your housing standards. Otherwise, there is no quick way. It will take not just getting some credit history, but also saving enough to have a substantial down payment. In this market, mortgages are not easy to get.
- Alex Rodriguez, "TopBrokerAlex"
- Contributions:14
STilen, Lease options are just one more creative way to buy a house when your "Hands are tied", otherwise. Those who may not fully understand them, have nothing good to say about them, I was one of them at one time. I suggest you spend time researching the subject online, and once you are fully comfortable with it and get to understand it, (This advice is not just for you) then decide if that's a tool you want to use, or even talk about. I am not here to endorse anybody's products or information. But for instance, if you google "Lease Options" you may come across websites such as: http://www.usaleaseoptions.com/index.html which may give you basic free information without buying any memberships. Or you may visit your local Barnes & Nobles, and I am sure you will find a book or two on the subject...Then you can make your own mind up. Again, I am only trying to answer your original question: "Is there any faster way to get a loan for a house?". Remember just because a couple other people only may know about 30-year fixed mortgages and how to qualify for those, it does not mean, everything else in the world of home financing is disgruntled...Thanks!
- stilen
- Contributions:16
just a stat i want everybody to be aware of, average wages of white males ages 25-65 is $39,403 http://www.commerce.gov/ i dont know if that is gross or net, when dealing with loans is income normally factored in as net or gross? the 35k income for me is net, gross is around 45k, thats not including any overtime which i regularly get, not including any incoming pay raises, not including any expected bonuses, and not to compare myself to the general pop, i just want people to be aware that going to school to get a edu will not necessarily promise me a better job with a higher income, let alone benefits, and factoring in the potential income lost from doing 2-4 years of schooling, and factoring tuition cost
- SoCal_Engr
- Contributions:6604
There are some REA-speak-to-normal translations needed on this thread...
REA-Speak - "any close relatives that might want to invest with you?"
Translation - You have no hope of qualifying on your own. Is there someone with more money and better credit who you can strong-arm into the deal?
REA-Speak - "more aggressive approaches"
Translation - You need to be willing to take on bigger risks, maybe over-leveraging by using an ARM or finding questionable property and hoping to hit one out-of-the-park.
The real world situation is that if you find a "gem", there is likely to be others with more solid financial footing who are going to take it away from you.
Your initiative and objectives are admirable, but your approach is likely to get you into unintended situations. Take a lesson from all the folks who took a "short cut" using no-down, low-down, or no-doc loans to "get into the game". Many, if not most, are now taking baths as they started off under-capitalized and only had one exit strategy...a booming REA market.
If you're serious about making this a "real go", you'd be wise to take one step back and learn more about the RE industry and put together a viable plan - one that includes organizing your finances so that you don't end up overly leveraged...or, worse, dragging others into the game with you.
- stilen
- Contributions:16
Alex Rodriguez- please enlighten on "more aggressive approaches" like i have said lease options are very hard for me to find any listing of, what are some ways i could find more of those? i normally check listings of all sorts on windermere, Google maps (real estate), craigslist, and zillow
- stilen
- Contributions:16
laurie way, i would really like to know what are some possibilities for others to "invest" with me and what that would do to decrease the time frame, if you dont want to post on this thread feel free to email nato10500@gmail.com
- stilen
- Contributions:16
HUGD to continue where your quote ended "but i have a hard time finding any listings of that nature let alone in the criteria i need" what i meant to imply is that i realize those kind of deals are very rare if at all, thats why i want to know what ways, if any, are there ways to get/qualify for a loan any sooner, not how seriously delusional i sound. second, yea i know my grammar is not to good, sorry i dont spend time editing zillow answer post, 3rd im sure you really know anything about what shipyard i work at (TODD) and what kinda contracts we have with the navy for the next 20 years or what kinda out-of-work wait times my union has (7 weeks), and thanks for the luck to me
- Karla Wagner, "karlaw"
- Contributions:151
Unfortunately, there is no fast way. Start saving your money and building your credit. Good luck to you.
Alex, Agent #2 says:
"But, if you really want that house and have the temperament to be a bit more aggresive, maybe you should consider a lease-with-an-option-to-buy."
Maybe I am being cryptic; I'll spell it out.
What seller would lease purchase to you a property and allow you to rent it at a higher amount than they are collecting from you? They would have to be the stupidest investor on the planet!
Dear Real Estate Agents;
Please stop telling people that they can do lease options, lease purchases, rent to own, leasebacks .., blah, blah, blah, on a property someone wants to buy as an investment property.
You should all have your licenses pulled just for suggesting the idiocy!
"But, if you really want that house and have the temperament to be a bit more aggresive, maybe you should consider a lease-with-an-option-to-buy."
Maybe I am being cryptic; I'll spell it out.
What seller would lease purchase to you a property and allow you to rent it at a higher amount than they are collecting from you? They would have to be the stupidest investor on the planet!
Dear Real Estate Agents;
Please stop telling people that they can do lease options, lease purchases, rent to own, leasebacks .., blah, blah, blah, on a property someone wants to buy as an investment property.
You should all have your licenses pulled just for suggesting the idiocy!
"I seriously do not have any more time to answer any more disgruntled people."
It was an easy question Laurie and since you are the one that offered up your professional advise on these investment opportunities, I don't see why you would not detail them for the OP. We know how you love "helping people" right?
You answer is typical that when presented with a solid thought process an facts, a REALTOR sees that as an insult. Facts to a REALTOR are like feet to an obese person.
See if you can figure that one out!
It was an easy question Laurie and since you are the one that offered up your professional advise on these investment opportunities, I don't see why you would not detail them for the OP. We know how you love "helping people" right?
You answer is typical that when presented with a solid thought process an facts, a REALTOR sees that as an insult. Facts to a REALTOR are like feet to an obese person.
See if you can figure that one out!
- Laurie Way, "Laurie Way"
- Contributions:61
OK, last answer for tonight because I seriously do not have any more time to answer any more disgruntled people. Have a great evening and enjoy your life!
- Alex Rodriguez, "TopBrokerAlex"
- Contributions:14
It depends if you want to take a conservative or an aggresive approach to purchase your first home. Conservatively speaking, your banker was right. But, if you really want that house and have the temperament to be a bit more aggresive, maybe you should consider a lease-with-an-option-to-buy.
" Stilen still has some great opportunities for investment."
Really Laurie? What opportunities are those with no credit ... seeking an investment property ... looking for an owner financed investment property ... with no down payment and a 35K/year income?
Please list these opportunities for investments that you see.
Really Laurie? What opportunities are those with no credit ... seeking an investment property ... looking for an owner financed investment property ... with no down payment and a 35K/year income?
Please list these opportunities for investments that you see.
"im looking for is somehting above 2800 square feet, does not have to be a nice house at all, just something that is rant-able or can be made rent-able and be located within a 10 mile raduis of where i live, iv looked into lease-option and owner financede"
Stilen,
The best way to describe what you are saying is "seriously delusional"; you have no idea how ridiculous what you say is. You need to educate yourself not only on life, but on mortgages. Saying you are looking for a lease option or owner financing on a rental property shows that you have no clue what you are doing and no business wasting anyone's time thinking of buying. Furthermore, you need at least 20% down for an investment property and a credit score well above 620.
You have zero chance of buying an investment property anytime soon. Sorry to be blunt, but I see no reason to encourage someone to waste their time and the time of others on a pipe dream.
Lastly, from your exhibited grammar, you really should consider furthering your education; when the shipyard closes and you have to find a new job, you will be seriously limited by your lack of basic communication skills.
Good luck to you!
Stilen,
The best way to describe what you are saying is "seriously delusional"; you have no idea how ridiculous what you say is. You need to educate yourself not only on life, but on mortgages. Saying you are looking for a lease option or owner financing on a rental property shows that you have no clue what you are doing and no business wasting anyone's time thinking of buying. Furthermore, you need at least 20% down for an investment property and a credit score well above 620.
You have zero chance of buying an investment property anytime soon. Sorry to be blunt, but I see no reason to encourage someone to waste their time and the time of others on a pipe dream.
Lastly, from your exhibited grammar, you really should consider furthering your education; when the shipyard closes and you have to find a new job, you will be seriously limited by your lack of basic communication skills.
Good luck to you!
- SoCal_Engr
- Contributions:6604
Agreed, I was oh-so-wrong. No better idea in the world than to enter into a joint financial venture with an 18-year old. My bad.
- Laurie Way, "Laurie Way"
- Contributions:61
"Pardon my incredulity, but are you nuts? The last thing the OP's relatives need is to be asked to cosign their reputation for anyone who can't qualify on their own."
SoCal_Engr thankfully I'm blessed with the fact that I do not need to just "make a commission" in order to live. So, no, I do not think I'm nuts. That's not the way I work and I wish you would have figured that out before you made such an incredible assumption. I have many clients whose parents, aunts and uncles have decided to "invest" in real estate with loved ones. Not "co-sign" in order to make someone who can't qualify, qualify. I would never suggest anything of the sort. But real estate in Seattle is still a good investment. I can't comment on your situation in Southern California since I have no current knowledge ( I did live there for a few years in the LA/Orange County area). Stilen still has some great opportunities for investment. Seems to me it would be a great opportunity in Bremerton, which I'm assuming he's in based on information. Also, the Nimitz has just been assigned to Bremerton for a year's maintenance and their families are being allowed to move here from San Diego. That seems like a great opportunity for anyone to get just that many sailors and their families to rent something for a year minimum. Good luck Stilen!
- SoCal_Engr
- Contributions:6604
I and my parents had some tenants that we needed to evict (behind on payments, etc.). When I checked into the legal process to handle an eviction, it turned out to be easier, quicker, and more reliable to negotiate an end to their rental. We ended up forgiving all back rent, plus gave them remainder of current month and next to locate new digs and move. When we went in and were cleaning up and getting the house ready for new tenants, we discovered they had cut into the electrical to gain direct access to 220V service.
Oh yeah...these were "family friends".
Rentals can work. It's just that you don't want to get into one "on the skinny". Have a reserve to pay for repairs, or to float the rental while it sits empty.
Oh yeah...these were "family friends".
Rentals can work. It's just that you don't want to get into one "on the skinny". Have a reserve to pay for repairs, or to float the rental while it sits empty.
- stilen
- Contributions:16
"Ask about the problems that can come from renting out." Dan, that is very common response i get from people, like "if its so east everybody would be doing it"
im just wondering if you advise from experiance with rentals and tenates? not to question your knowledge i would only like to know sombody other then my dad who does this kind of rental, i only say this because unlike other people who can reasonable SPECULAT problems such as vacancy, emergancies, time consument, ect, i am fortunate enought to literally witness my dad spend about 4 hours a month collecting rent, a single craig post with 8 callers, and there are rare tenates that do know away around the system, but that is a dual sided sword, and emergencies do happen most of which are fixable, there are always potentially fatal risk in everything, the other year this 120 foot tree fell exactly paralel to a propertie which surely would of been a deal breaker for that house, anyways i actually have the seen and experianced the pro's and cons to this field of bisness, to get back on topic =), a mortgage specialist said that if i developed lines of credit via auto loan, cards, ect he would be able to get a loan in 12-24 months depending on how i do with my credit building he said, i want to know if anybody has ANY advise to get a loan for the rental prop any sooner
- Dan, "the_country_hick"
- Contributions:4827
The biggest benefit to a rental house is getting the monthly income.
The biggest problem with a rental is having it vacant trying to get a renter or worse yet having a non-paying tenant who knows the system and goes a lot of months before you can foreclose. All of that time you still have to pay the mortgage and any repairs that are needed. If you do not have a cash cushion for such events you should wait until you do.
Ask about the problems that can come from renting out. They can be bad. It can be worthwhile but can also be a serious pain in the...
The biggest problem with a rental is having it vacant trying to get a renter or worse yet having a non-paying tenant who knows the system and goes a lot of months before you can foreclose. All of that time you still have to pay the mortgage and any repairs that are needed. If you do not have a cash cushion for such events you should wait until you do.
Ask about the problems that can come from renting out. They can be bad. It can be worthwhile but can also be a serious pain in the...
- Luisa Clements, Realtor, "San Antonio home"
- Contributions:131
Build your credit, save for your down payment, save money for emergencies, and get a mortgage you can afford.
Good luck!
Good luck!
- stilen
- Contributions:16
"i would say a good education is your best bet." right now i have a union job in a well established ship yard which i do plan on staying with, the income i will have grossed over 5 years of this job is barley over 200k, thats with no pay raises, not to get political or glorify but i have told by many people with 4 year edu can simply not get the income/benifits i am getting until manny years down their career, also i dont plan on buting house for personal reasons it would be a rental income, that i would be net'ing income month to month, im not looking for the average/safest/best loan although those are nice attributes in a loan, im really going for the fastest as as ever month i do not have that rental im essentially missing out on expected profits from that rental property, thank your for your feed back!
- stilen
- Contributions:16
my dad makes cash only from 2 rental properties and has had a bankruptcy 4 years ago, my grandma has a credit score of about 800 but is almost 80 years onl and her only income is from her retirement, the ideal house im looking for is somehting above 2800 square feet, does not have to be a nice house at all, just something that is rant-able or can be made rent-able and be located within a 10 mile raduis of where i live, iv looked into lease-option and owner financed but i have a hard time finding any listings of that nature let alone in the criteria i need, and thoughts far fetched or not wouldb be very appreciated.
Fastest way to get a Mortgage
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.