OfflineHi All!
Im a CPT in the Army and located at a post where real estate is still booming for the most part. I read all of Deans books and am ready to get started but cant get past the few questinos below. Any help in answering these would be greatly appreciated!!
1. I scared about financing deals in the future. I can get a loan but I want to buy a number of properties for rental units. After time, I heard that lenders will not lend with high debt to income ratios? How do I get around this? I heard with LLCs this make work but wont my personal credit be affected using a new LLC?
2. As stated above, I want to invest in rentals but want to buy a personal home using my VA loan in the future. Will having a bunch of rentals effect this?
I guess Im just scared that I will get 2-3 investment properties and not be able to buy a home for my family in the future.
Any advise would be greatly appreciated!
owning multiple properties will not effect your VA status. However, VA loans are for primary residence, so you are correct to save it for when you want to buy your own home.
As for your debt-to-income, find a good mortgage broker that has access to multiple lending sources. I have done multiple loans for people on investment properties that have jobs that don't necessarily make great money. The key is to buy them cheap, buy them 1 at a time, and make sure they have positive cash flow. Once you get 1 to cash flow and you have good rental history, it becomes less risky for lenders to lend to you. There are lenders that look at each situation on a case-by-case basis rather than letting an automated underwriting system dictate good or bad. Also, there's commercial money lenders that will do multiples at one time. These loans are primarily based on the assets cash flowing and not so much your credit and income.
Get to be best buds with a mortgage broker or two...it will serve you well!
Thanks for your service! Hooah!
Thanks!
Kevin
"Learn and Earn!"
U need to get your LLC going and go to the bank and open up an account and put little money in and start establishing your LLC credit. Work with your bank and you will get some credit limits. LLC has nothing to do with your personal credits or liabilities. Good luck !!
Paul
Thank you very much for the advice! I think this forum is great! Thank you again for your time!