2/10/15 Wednesday
Day 3. Today, I did some research into the advantages of leveraging. I currently have about $50k in equity on my primary residence. I have read several articles that state that you should try and use as little of your own capital as possible. With the simple calculations that I did, it seems more advantageous from a cash flow perspective to use your own capital as a down payment. I still have some homework to do though.
My current plan is to buy enough rental properties to replace my current income of $90k a year. When I do that, I will quit my job. Simple calculations to accomplish this include the following:
I figure I can collect $1500 a month for rent. I estimate monthly expenses (including mortgage) to be $1000. $90k/12 is $7500/month. $7500/500 = 15. So I will need 15 houses to replace my current income. My goal will be to buy 2 houses a year minimum. That makes this a 7 year plan. Then, as the mortgages are paid off, that's more monthly cash flow for me. This is an evolving plan, and something for me to look back on in the future and see how my plan has evolved.
I also continued reading 2 Years to a Million in Real Estate.
Still waiting on responses for pre-approval from the bankers.
Please check out my website for my other side business/hobby. www.yrlenterprises.com and at facebook.com/yrlenterprises.
Thursday, February 11, 2016
Wednesday, February 10, 2016
Quitting Your Job Using Rental Properties - Day 2
2/9/15 Tuesday
Today is the second day on my road to retirement with real estate. The goal is to replace my current income with income from rental properties. I continued reading 2 Years to a Million in Real Estate. The book has a ton of useful information.
I heard back from the online banker who lives 400 miles away today. We'll call her Jessica. She sent me an email that simply said, "With your credit score of 640, you will need to put 25% down." Then she asked for the same documents that Hank asked for yesterday. I got the feeling from the tone of Jessica's email, that she was not really interested in working with me. I sent her the info she requested anyway, because it's not about what she wants, its about what I want. We'll see how she responds.
I also sent Hank all the information that he requested yesterday. I asked my wife yesterday to gather all the documents that Hank had requested. She gathered them nice and neat on Sam (that's what we call the table near our front door) and left me a note. Well me being the oblivious male that I am, walked right passed them on my way to work and didn't see them. So, on my lunch break, I hustled back to the house and picked them up. I used my work scanner to scan them in and sent them off to Hank. He said he would review everything and let me know if he needed anything else from me.
And that's pretty much it for the second day. I'm still excited.
Please check out my website for my other side business/hobby. www.yrlenterprises.com and at facebook.com/yrlenterprises.
Today is the second day on my road to retirement with real estate. The goal is to replace my current income with income from rental properties. I continued reading 2 Years to a Million in Real Estate. The book has a ton of useful information.
I heard back from the online banker who lives 400 miles away today. We'll call her Jessica. She sent me an email that simply said, "With your credit score of 640, you will need to put 25% down." Then she asked for the same documents that Hank asked for yesterday. I got the feeling from the tone of Jessica's email, that she was not really interested in working with me. I sent her the info she requested anyway, because it's not about what she wants, its about what I want. We'll see how she responds.
I also sent Hank all the information that he requested yesterday. I asked my wife yesterday to gather all the documents that Hank had requested. She gathered them nice and neat on Sam (that's what we call the table near our front door) and left me a note. Well me being the oblivious male that I am, walked right passed them on my way to work and didn't see them. So, on my lunch break, I hustled back to the house and picked them up. I used my work scanner to scan them in and sent them off to Hank. He said he would review everything and let me know if he needed anything else from me.
And that's pretty much it for the second day. I'm still excited.
Please check out my website for my other side business/hobby. www.yrlenterprises.com and at facebook.com/yrlenterprises.
Tuesday, February 9, 2016
Standard Questions your Mortgage Banker will Ask
Here is a list of questions that will be asked by your banker:
3. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?
4. Are you a party to a lawsuit?
5. Have you been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgement?
6. Are you presently delinquent or in default on any Federal debt or any other loans?
7. Are you obligated to pay alimony, child support, or separate maintenance?
8. Is any part of the down payment borrowed?
9. Are you a co-maker or endorser on a note?
10. Are you a U.S. citizen?
11. Are you a permanent resident alien?
12. Do you intend to occupy the property as your primary residence?
13. Have you had an ownership interest in a property in the last three years?
14. What type of property did you own? Principal Residence Second Home Investment Property Principal Residence Second Home Investment Property
15. How did you hold title to the home? Sole Ownership Jointly with Spouse Jointly with Another Sole Ownership Jointly with Spouse Jointly with Another
1. Are there any
outstanding judgements against you?
2. Have you been
declared bankrupt within the past 7 years? 3. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?
4. Are you a party to a lawsuit?
5. Have you been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgement?
6. Are you presently delinquent or in default on any Federal debt or any other loans?
7. Are you obligated to pay alimony, child support, or separate maintenance?
8. Is any part of the down payment borrowed?
9. Are you a co-maker or endorser on a note?
10. Are you a U.S. citizen?
11. Are you a permanent resident alien?
12. Do you intend to occupy the property as your primary residence?
13. Have you had an ownership interest in a property in the last three years?
14. What type of property did you own? Principal Residence Second Home Investment Property Principal Residence Second Home Investment Property
15. How did you hold title to the home? Sole Ownership Jointly with Spouse Jointly with Another Sole Ownership Jointly with Spouse Jointly with Another
Quitting Your Job Using Rental Properties - Day 1
2/9/16 Monday
I had been researching, thinking, and contemplating getting into real estate for a couple of years now. My parents own rental property, my wife's parents own rental property, so it just seemed natural for us to follow. Yesterday, I took the first step. I contacted a couple of bank mortgage officers to get pre-qualified to buy a rental property.
The first person I contacted was an on-line banker who works for the bank that I currently have my checking and savings accounts with. It is a small bank, so the nearest mortgage banker is at their corporate headquarters 400 miles away. Anyway, she emailed me a form to fill out, which I did. I have not heard back from her. I will update on future blogs when I do.
The second person that I contacted was a local banker, we'll call him Hank, who works for the same bank that loaned me the money to purchase my primary residence back in 2009. I was able to reach him by phone and got better response. Hank asked me a few questions to estimate my income, debt, and assets. He also asked me some standard questions which you can find here. Then he asked for my SS# to check my credit, which I expected he would do, so it wasn't a problem. The problem was after Hank checked my credit. I knew there were some bad marks on there. I had been monitoring my credit for about a year through Experian, in anticipation of this day. Experian said my credit score was a 690. A little low I thought, but I had no doubt that I would be able to raise it over 700 before the time came to purchase, so I was ok with it. To my surprise, when Hank called me back, he said my FICO scores ranged from 640-670-690, and they have to use the middle one. I may need to do a little more work on my credit before I proceed. I will find out soon and let you know on a future blog. So, my advice would be to know ALL 3 of your credit scores before you contact a banker. You probably already know that the higher your credit score is, the lower your interest rates will be, or possibly less money to put down up front.
After explaining over the phone the reason for some of the delinquent items on my credit report that have or have not been cleared up, Hank sent me an email in which he requested hard proof of some of the things I estimated during our very first phone conversation. Below is a list of what he wanted:
And that's pretty much it for the first day. I am excited about this endeavor and will be posting blogs in the future as I continue.
Please check out my website for my other side business/hobby. www.yrlenterprises.com and at facebook.com/yrlenterprises.
I had been researching, thinking, and contemplating getting into real estate for a couple of years now. My parents own rental property, my wife's parents own rental property, so it just seemed natural for us to follow. Yesterday, I took the first step. I contacted a couple of bank mortgage officers to get pre-qualified to buy a rental property.
The first person I contacted was an on-line banker who works for the bank that I currently have my checking and savings accounts with. It is a small bank, so the nearest mortgage banker is at their corporate headquarters 400 miles away. Anyway, she emailed me a form to fill out, which I did. I have not heard back from her. I will update on future blogs when I do.
The second person that I contacted was a local banker, we'll call him Hank, who works for the same bank that loaned me the money to purchase my primary residence back in 2009. I was able to reach him by phone and got better response. Hank asked me a few questions to estimate my income, debt, and assets. He also asked me some standard questions which you can find here. Then he asked for my SS# to check my credit, which I expected he would do, so it wasn't a problem. The problem was after Hank checked my credit. I knew there were some bad marks on there. I had been monitoring my credit for about a year through Experian, in anticipation of this day. Experian said my credit score was a 690. A little low I thought, but I had no doubt that I would be able to raise it over 700 before the time came to purchase, so I was ok with it. To my surprise, when Hank called me back, he said my FICO scores ranged from 640-670-690, and they have to use the middle one. I may need to do a little more work on my credit before I proceed. I will find out soon and let you know on a future blog. So, my advice would be to know ALL 3 of your credit scores before you contact a banker. You probably already know that the higher your credit score is, the lower your interest rates will be, or possibly less money to put down up front.
After explaining over the phone the reason for some of the delinquent items on my credit report that have or have not been cleared up, Hank sent me an email in which he requested hard proof of some of the things I estimated during our very first phone conversation. Below is a list of what he wanted:
- Copy of the last (2) years tax returns along with copies of all W-2's.
- Copies of the last two most recent pay-stubs - with year to date information
- Copies of the most recent bank statements for all deposit accounts
- Copy of Social Security Card
- Copy of Driver's License
- Mortgage Statement - A copy of my most recent mortgage statement for my current residence
- Insurance and Taxes - A copy of both homeowner's and windstorm coverage along with a copy of paid property taxes.
And that's pretty much it for the first day. I am excited about this endeavor and will be posting blogs in the future as I continue.
Please check out my website for my other side business/hobby. www.yrlenterprises.com and at facebook.com/yrlenterprises.
Monday, December 21, 2015
Types of Personalities - The Lazy Engineer
Make sure you visit my website here. and my facebook page @ YRL Enterprises
YRL Enterprises is now a household name.
TYPES OF PERSONALITIES - THE LAZY ENGINEER
He may be knowledgeable in his field, or maybe not. There's no way to know because you can't get any work out of him. He doesn't respond to emails, so you have to talk to him in person. When you walk up to his office, he is usually on the phone - playing games or on facebook. When you talk to him, he knows exactly what you need, because apparently he has read your emails, he just hasn't done what you asked. This personality type will require a ton of pushing, prodding, and coordination. He must respond to his supervisors requests, or he would not be employed.
Make sure you check out our website at here, and like our facebook page YRL Enterprises.
YRL Enterprises is now a household name.
TYPES OF PERSONALITIES - THE LAZY ENGINEER
He may be knowledgeable in his field, or maybe not. There's no way to know because you can't get any work out of him. He doesn't respond to emails, so you have to talk to him in person. When you walk up to his office, he is usually on the phone - playing games or on facebook. When you talk to him, he knows exactly what you need, because apparently he has read your emails, he just hasn't done what you asked. This personality type will require a ton of pushing, prodding, and coordination. He must respond to his supervisors requests, or he would not be employed.
Make sure you check out our website at here, and like our facebook page YRL Enterprises.
Friday, December 18, 2015
Types of Personalities - The Inappropriate Sarcastic
Make sure you visit my website here. and my facebook page @ YRL Enterprises
YRL Enterprises is now a household name.
TYPES OF PERSONALITIES - THE INAPPROPRIATE SARCASTIC
This person is not sarcastic about inappropriate things, but rather sarcastic at inappropriate times. They think its funny to say things that could very well be taken seriously, and you have no reason to believe they are not serious, but they are not serious. Example: After asking a simple task of the Inappropriate Sarcastic in a workplace setting, the Inappropriate Sarcastic replies, "OK, but I'm going to have to charge that time to your work order number." Then, when you tell the Inappropriate Sarcastic, "OK, that's fine." The Inappropriate Sarcastic says, "No, I'm just kidding." Well guess what Inappropriate Sarcastic, that's not funny. It's not a joke, it's not cute, it's not funny. It's annoying and a waste of time.
Check out my blog for more personality types as they become available. And check out the About section of my website to learn more about me.
YRL Enterprises is now a household name.
TYPES OF PERSONALITIES - THE INAPPROPRIATE SARCASTIC
This person is not sarcastic about inappropriate things, but rather sarcastic at inappropriate times. They think its funny to say things that could very well be taken seriously, and you have no reason to believe they are not serious, but they are not serious. Example: After asking a simple task of the Inappropriate Sarcastic in a workplace setting, the Inappropriate Sarcastic replies, "OK, but I'm going to have to charge that time to your work order number." Then, when you tell the Inappropriate Sarcastic, "OK, that's fine." The Inappropriate Sarcastic says, "No, I'm just kidding." Well guess what Inappropriate Sarcastic, that's not funny. It's not a joke, it's not cute, it's not funny. It's annoying and a waste of time.
Check out my blog for more personality types as they become available. And check out the About section of my website to learn more about me.
Thursday, December 17, 2015
How to Get People on Your Side
HOW TO GET PEOPLE ON YOUR SIDE
www.YRLenterprises.com
Ask a question that you know they know the answer to, even if you already know the answer too. This also works if you ask them to explain something to you. It doesn't matter if you need the information they provide or not, if you ask them for help, they will like feeling like they know more than you. Most people are naturally inclined to help, not necessarily because they are nice, they just like to feel superior. It takes skill to ask without looking stupid, so that's why its best to already know the answer, so you are sure that your question is not ridiculous. Also, it is suggested to ask question / for advice in a one-on-one setting, so you don't put the person on the spot in front of others. If they happen to not know the answer, it could backfire on you. Also, if they give an answer that you know is wrong, do not argue with them, question them, or give them the correct answer. Just go along with what they say. You don't have to know everything, and admitting that you don't in this manner makes you appear like you are willing to learn. It's better to know more than you portray than to portray more than you know, because in doing so, you will undoubtedly portray exactly what you don't know.
Make sure you check out my website at www.YRLenterprises.com
and don't forget to like my facebook page at YRL Enterprises.
Subscribe to:
Posts (Atom)