HOW TO STRUCTURE FIRST INVESTMENT PURCHASE - Posted by Olga

Posted by CTH on September 27, 2003 at 11:33:07:

Why not purchase a home to live in first.
Much easier to obtain financing.
In Kansas there are many 100% loans for owner occupied properties.

HOW TO STRUCTURE FIRST INVESTMENT PURCHASE - Posted by Olga

Posted by Olga on September 25, 2003 at 17:13:35:

I have a few questions:

1.My husband and I are thinking of making our first investment. We do not own our home and therefore do not have any mortgage history. Our credit is great (790 FICO), but we have spoken with a few lenders who have told us that they cannot give us good terms (i.e., 5% down) because we do not have any record of mortgage payments. Any suggestions?

  1. Also, we would like to know if we should form a corporation in order to make our first purchase or if it’s okay to incorporate after making the purchase. Would having the corporation buying the property make any difference in terms of financing? Would an LLC be a better option?

  2. In addition, since it’s our first purchase, we’re a bit wary about managing the property ourselves. The property is located in a “challenging” area, and we’d rather not have to travel there to make repairs, collect rent, etc. However, everyone we have spoken to has suggested that we do not hire a property management company for our first investment, because we should gain experience and because we should save every dollar we can.

I apologize for the breadth of my message but really would appreciate your comments/suggestions.

Thanks!!!