TDS Blues

[stocdavw]

I am a new REIN member. I would love to invest in more Real Estate, but here is my problem. I own 2 properties, one of which is my personal residence. My TDS is at 40%. I understand that if I have 3 properties my TDS may become a non-issue. Does anyone have any ideas that might help me get past this road block?

 

[jeremyfleming]

stocdavw -
Study everything you can get your hands on regarding Joint Ventures. I am a self employed investor and use Russell Wescott`s Joint Venture Secrets to purchase property. It works! I have bought houses using none of my own money and none of my own credit using Joint Ventures.

Hope that gets you started in a direction.....

Cheers,
Jeremy

 

[Anonymous]

QUOTE (jeremyfleming @ Aug 30 2007, 01:27 PM) stocdavw -
Study everything you can get your hands on regarding Joint Ventures. I am a self employed investor and use Russell Wescott`s Joint Venture Secrets to purchase property. It works! I have bought houses using none of my own money and none of my own credit using Joint Ventures.

Hope that gets you started in a direction.....

Cheers,
Jeremy


I would agree to the JV Package... In fact, if you have your joint venture partner either go on title jointly OR by them selves, your TDS is not involved.

You may want to talk with Peter Kinch`s office to help you best understand your situation but JV is the way to go just like Jeremy said. We have done this now 51 times and I have been self-employed for about 50 of those properties.

Hope that helps.

 

[stocdavw]

Thanks for the replies, guys. I was thinking JV anyway. I just wanted to get a few under my belt first on my own.

 

[Anonymous]

QUOTE (stocdavw @ Aug 30 2007, 03:31 PM) Thanks for the replies, guys. I was thinking JV anyway. I just wanted to get a few under my belt first on my own.

I would suggest you start sooner than later on the JV, assuming you have the capital, you can maybe do one more if your TDS is an issue... or you could JV as the $ partner with someone who is alignment with your values and goals. Either way, starting to JV and utilize all the points in the JV Secrets is best suggestion. When I lost my job, Don told me to go out and JV - 4 years later, I have purchased 51 properties with Joint Venture Partners. Russ is buying 2 per month right now.

Why wait? now is a great time! After the long weekend, ask everyone you meet how their summer was and when they ask back, tell them you were busy buying, researching, and working on your real estate business. If they show interest, set up a meeting with them to talk about what is possible.

Good luck!

 

[stocdavw]

Thanks, Mark. Now that I know the direction I must take, I can focus on it. I already have a couple of leads for hassle free tenants, and I will start looking for JV partners. I feel pretty confident that I can reach my goal of investing in at least two more properties this year.

 

[Anonymous]

QUOTE (stocdavw @ Sep 1 2007, 12:17 PM) Thanks, Mark. Now that I know the direction I must take, I can focus on it. I already have a couple of leads for hassle free tenants, and I will start looking for JV partners. I feel pretty confident that I can reach my goal of investing in at least two more properties this year.

Glad to hear it... have a great weekend and remember, any question you have or will have, there are many others who have already answered it... just post it up on the forum and it will be answered.

Good luck!

 

[Anonymous]

QUOTE (stocdavw @ Aug 29 2007, 09:08 PM) I am a new REIN member. I would love to invest in more Real Estate, but here is my problem. I own 2 properties, one of which is my personal residence. My TDS is at 40%. I understand that if I have 3 properties my TDS may become a non-issue. Does anyone have any ideas that might help me get past this road block?

Your TDS will always be an issue regardless of how many properties you get. Firstline is the only lender that separates you and the portfolio after 3 properties using a 1.1 DCR ( Debt coverage ratio ). Other large lenders will still make you qualify using the "rental offset" method and this goes back to your TDS as the numbers are dealt with there.

EXAMPLE:

$1000 monthly rental income
$700 rental amount that can be used for income ( using a 70% offset - 30% is deducted for expenses )
$800 mortgage payment
$100 deficit which now needs to be factored into your TDS.

If the property is positive then the surplus is added to your income.

If you are using your JV partner to qualify for the mortgage and you are not going on title there`s no problem unless of course their TDS is high.

Make sure you work with a banker or broker that understands how this works or you WILL hit the wall.

Good luck.

W

 

[Harjit]

I am a new REIN member. I would love to invest in more Real Estate, but here is my problem. I own 2 properties, one of which is my personal residence. My TDS is at 40%. I understand that if I have 3 properties my TDS may become a non-issue. Does anyone have any ideas that might help me get past this road block?

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