Financing -- Loans/Real Estate Help

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Question
Hello I'm a Real Estate investor. I have steady employment as a nurse and I have been working at my job for many many years. I'm currently 58 years old and I own a few houses. I own two houses that are paid out for and one condo that is paid out for. I have one house that I still owe a mortgage one. So a total of three houses and a condo. The mortgage payment monthly is about 3500. I rent out my two houses and condo and I use that to pay the mortgage. With the real estate marketing starting to pick up steam I wanted to buy some additional real estate and rent them out and wait for them to appreciate. The issue is when I go for a loan or try to seek financing they tell me I'm over extended. I have excellent credit above 720 and never defaulted, was late, or unable to make my payments. I never formed a corporation or LLC all is done in my name. I would like to buy one or two additional houses and rent them out before they become really expensive. The price ranges of the houses I'm looking at are 50,000 to 100,000. Sorry in advance if you don't answer these questions, everything I have done so far was based on self research and self planning. Is their a way I can find financing? Should I form a corporation or LLC and is their any tax benefits that I could benefit from or ways to pay less tax on my investments? Thank you for your time.

Answer
Randy,

From everything you've told me in you note, there should be no reason you can't buy at least 3 more properties, as long as you have the 20% to 25% down payment that the banks are asking for on an investment finance and your debt-to-income is no higher than 45%. As for forming a Corp or LLC, that wouldn't make a difference in getting financed, and their is nothing I can tell you about any other benefit's to reducing your taxes on the investment properties, other than the write off's for repairs, taxes and insurance that you'd normally take.

So I'm thinking, if you are being told you are over extended, then it can only mean your
debt-to-income is the real issue. Without looking at the whole pitcher, it's hard to see why you aren't able to qualify. If you'd like, you can call me at 330.957.9700 and I'll gather some information and see if I can't figure out why you can't get financed.

Thanks,

Bobbi Buehl
Sr. Loan Officer

Financing -- Loans

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Bobbi Buehl

Expertise

Home mortgages is my expertise

Experience

Experience in the area 15 years Organizations Mortgage Brokerage Education/Credentials BS in Chemical Engineering, BA in Sales and Marketing. Licensed Loan Officer for 6 years and I have worked as a Loan Officer for 15 years.

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