I need some help. We currently own two homes with mortgages. One is primary residence and the other rental. We are interested in building a home here in the area to sell for a profit, however you have to keep that property for 1 yr before you can sell. Not a problem. The builder said if we are going to rent this home out after it is finished then that rent would offset the debt. Great. We just need to know the best way to go about financing a mortgage (if we go through theirs, they pay all closing cost) or borrowing money from our other homes to help pay for this property. What are your suggestions as to pulling this off? It was hard to get a second mortgage and the interest rate was high. So I don’t know if we can qualify for a third mortgage. Please help us figure this out. Thanks so much.
Wendy
This easy you can get multiple properties.
I have clients that have 20-30 mortgages on thier credit reports so it is not a problem.
Please see the following thread
http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=4761
This should help alot of people know that you can get thousands of properties
You are not limited by money just by your own thoughts so open your mind to unlimited access to money and properties.
There are always ways to creatively finance properties.
RJ Baxter
I appreciate the info. Please if anyone else has advice respond. I have been reading about “no ratio” mortgages and “construction to premenant” loans. Would these be something to consider in trying to obtain a third mortgage? Also, I read that a third mortgage is not tax-dedutable. Is this true? If so, why not?
Thanks.
No Ratio loans are loans that they do not care about your debt ratios they can be great loans for investors especially when the rents off set the mortgages and you have alot of comsumer debt because investor have high home depot or Lowes accounts or they are buying homes with Credit cards and they will be paid off later when the homes are sold that is why my clients use that type of loan
You can get construction to permanate loans they are a little harder to get as a NOO and it can be done as spec homes and it is again a great way of building homes as an investor you just have to have a contractor that has 5 years experience.
All Mortgages are tax deductable When they are in a first and second mortgage or lien position, even if you have multiple properties it goes on your schedual K on realestate owned and there is depreciation and itemiztions that you take on your taxes.
Now if you are talking about a third mortgage or lien position then you might need to talk with the IRS or a CPA on whether or not it is tax deductable but from my understanding they are.