Posted by scook85 on February 20, 1999 at 18:02:27:
Thanks for the response, I think that is going to be the approach we are going to take to get started. It sounds like if we are carefull we should be ok.We will get with some local companies(we allready did) and get the ball rolling, again thanks…John
question on no doc loans - Posted by John
Posted by John on February 20, 1999 at 03:44:40:
We just moved to Columbus Ohio and bought a home using a no doc loan, we want to purchase our first income producing property and would like to know if it is possible(wise) if we pulled some equity from our home( we put down 25% )and used it to purchase a duplex or other multifamily property using another no doc loan, then just kept moving this money along and kept buying more property?We are going to get started and are looking for the best way, and are open to suggestions. … thanks John in Columbus
Re: question on no doc loans - Posted by SCook85
Posted by SCook85 on February 20, 1999 at 09:19:04:
John,
It is a good idea to put your equity to work for you. Just sitting there as equity does nothing as far as income is concerned.
I would caution you on a couple of things. First you don’t want to overleverage your properties. If you owe to much on them there may be no cash flow left. Once you do leverage your properties to the maximum if for some reason or another you HAD to sell you may find yourself in a situation where you can’t. Secondly, banks generally will not lend anything above 80% LTV on your second and third and … homes. Talk to your mortgage broker about the programs available, make sure that these programs will work with non owner occupied properties and see if there is a limit on the number of loans you can get. You will find that what works today in this industry may not work next week so you will have to stay on top of the programs available and tailor your deals to meet these programs.
Good luck!!!
SCook85