How many conventional morgages do you hold? - Posted by Brian

import · December 17, 1999, 2:22pm

Posted by Katie on December 18, 1999 at 17:00:01:

.

import · December 17, 1999, 2:22pm

Posted by Brian on December 17, 1999 at 15:22:05:

Just curious, after my first year of REI I now hold 3 conventional mortgages in addition to my primary residence. I am thinking I need to start looking at subject to, hard money, etc.

For those who have been doing REI for a while what is the percenatge of conventional loans you hold as compared to controlling property via L/O, subject to, hard money, etc.

I am concerned about acquiring a lot of debt in case the economy goes south.

Thanks,
Brian

import · December 19, 1999, 6:47am

Happy Holidays! - Posted by NJDave

Posted by NJDave on December 19, 1999 at 07:47:55:

Although I try not to reply to a post if I’m feeling confrontational or adversarial, yesterday, I vented at your expense. Here’s why:

Friday afternoon/evening I went to a local real estate broker’s Holiday Party. There was the usual mix of real estate agents, insurance sales reps, mortgage reps, etc.

But not one real estate professional.

20 years ago, when I first entered into the business, the theme was that we should strive to learn and bring a degree of professionalism to our industry. “Raise the bar,” we were told.

It doesn’t speak well for our industry when fundamentals are ignored. Not intentionally ignored, but just not given the consideration that is required in other professions. Can you imagine your doctor directing his nurse to remove your appendix when he meant that she place a bandage on your finger?

If we are going to practice real estate, we should be very comfortable with the basics. As real estate practitioners, we should elevate the bar of professionalism.

Just my opinion, and my practice.

import · December 17, 1999, 9:56pm

Re: How many conventional morgages do you hold? - Posted by Jim_MA

Posted by Jim_MA on December 17, 1999 at 22:56:52:

Brian,

There are many misleading statements that you will hear along the way if you been told 4 is the limit then thats only partially true. What they really mean is that you can only have 4 conventional conforming loans at one time. You can have as many non conforming loans as you can qualify for and the number that you can obtain from any one lender will vary from lender to lender. For example at the present time i have 2 commercial loans, 4 conforming, and 10 non-conforming. This is why it is important to have strong relationships with all types of financing sources. If you take the right deal to the right source the deal will happen.

import · December 18, 1999, 11:16am

Re: How many conventional morgages do you hold? - Posted by NJDave

Posted by NJDave on December 18, 1999 at 12:16:39:

Brian probably doesn’t know the difference between a mortgage and a mortgage loan (real estate 101) and as a result, the question has been misstated.

Everyone knows (or should know) that a mortgage is an asset, not a liability. The Borrower GIVES a mortgage in exchange for a MORTGAGE LOAN. Banks do not give mortgages, they take mortgages in exchange for making loans. Once the loan has been repaid, the mortgagee returns the mortgage to the mortgagor.

Perhaps the question should have been constructed:

For how many properties can I give mortgages in exchange for loans on real estate at any given time?

import · December 18, 1999, 6:38pm

Thanks for the clarification! - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on December 18, 1999 at 19:38:42:

Dave,

Thank you for devoting the time and the effort to point out the inaccurate use of a specific real estate term. While I agree with Potash that ?anyone else capable of answering the original question understood what Brain was asking?, I also think it is important to correct errors like Brain?s, not only for Brian?s sake but also for the sake of others visiting this website. There are many intricacies and technicalities in the real estate investment business. I think it would be a shame if a novice misunderstood a very basic real estate principal because of an inaccurate statement posted here. As long as corrections are offered in the spirit of friendly assistance, we should all welcome the efforts of those taking the time to point out the corrections.

Just my .02

Best of Success!!

Jim Kennedy,
Houston, TX

import · December 18, 1999, 4:08pm

Re: How many conventional morgages do you hold? - Posted by Potash

Posted by Potash on December 18, 1999 at 17:08:05:

Jim, I and anyone else capable of answering the original question understood what Brain was asking.