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dyslexiateechur said:   dbond79 said:   OP, out of the, at least, 5 properties that you've indicated you and your husband own or have "available",(3 rentals, your land, and his "a lot of land available"), how did you guys acquire all of these? Meaning, besides the one you've already said has a mortgage, did you not finance all or most of those purchases, or were they all purchased with cash, or inherited?

Assuming you guys must have some familiarity with financing real estate transactions, what's changed this time? Is it just your debt/lower score, banks higher underwriting standards, ???

You mentioned your hesitance to pull equity from existing properties based on old advice. I've often heard it suggested that you shouldn't borrow against your home in order to buy more investment properties, but can't recal hearing the reverse. I'm not a real estate expert, but aside from some probable tax implications on which others would be more knowledgeable than myself, I don't see the big difference between borrowing against an existing property vs. the

new one. Either way you're leveraging your purchase through debt.


I bought my homes the old fashioned way....bought one, sold it, bought another, etc. the last one was destroyed by Katrina, hence the land.

He does things a lot different from me though. The land is inherited, so he built on it with 50% cash and a small loan. He did most of the work himself. He bought the other two properties with cash and the mortgage was for a renovation.

He wants to build another house himself with cash. The thing is, he just doesn't have the time.

So to answer your question, the difference this time is that I'm trying to navigate a different lending industry while being married to someone whose attitude is to work hard and pay cash.

Right now, I'm seriously just thinking about paying off the debt and putting an addition on this house.

I'm just going to assume you are having issues getting your thoughts onto paper. Because you are all over the place, and every answer you give seems to prompt more questions.

No, he has an accountant and employees and stuff. I know the value of his business but it's my understanding that his business is a separate entity and that most of the "income" is retained in the businesses? We keep our money separate but we have a household account and a household budget. We both put 2000 a month into the household account and we pay our little bit of bills out that--the rest just gets saved. We just started doing that in August.

He'd love to become a contractor, but the issue is the subcontractors. It's very difficult to find a good one and even harder to find good workers plus he has NO time.

I'm a scientist--I've very good at recording data and writing up reports but informal communication is not my strong point. Plus I'm trying to not get too terribly specific.

I should also add that I am NOT a financial/business person (obviously). I get the idea of spending less than you make, I am good at couponing and finding deals, i know that debt is bad, but anything beyond that and I'm lost.

Which is why I came here to ask about this stuff.

dyslexiateechur said:   
He'd love to become a contractor, but the issue is the subcontractors. It's very difficult to find a good one and even harder to find good workers plus he has NO time.


If he had a contractor's license, he could buy stuff cheaper than without. Nobody would force him to use subs. There's another reason he hasn't gotten his license.

You have a good point there. I guess I should ask.

dyslexiateechur said:   I interpreted her as meaning that they could rent out their current house for 1200-1500 which would cover the future mortgage on the new prospective house they are thinking of buying.

Correct.

Sorry, but paying off 50% of the balance isn't close to being mostly paid off,..

Paying off 50% of my balance in 7 months isn't good? I plan on finishing paying off the rest by June.


If you can pay off all your debt in 13 months, then await an additional 13 months after jne, sock away all the income you had previously been paying towards the debt, and then buy a house with a decent cash downpayment.

ALSO: those no reason to "not be sure" about your credit rating. Get a FICO score and a credit report, read what's on it.

I've gotten my scores recently through Equifax and and I paid $8 or so for the number--do you recommend a different way of obtaining my credit score? The lender was going to give me a copy once she finished as well.

The best advice in here is to wait. You can work on fixing your credit, paying off your debt and building up your savings. You can file taxes together and get a better understanding of your husband's business. And not for nothing, you'll get a chance to live together as a married couple for a while and think about your needs in a home.

Order a copy of the Ikea catalog and subscribe to the Apartment Therapy site. Both offer loads of ideas for making the most of a small space. Often it's not just the small square footage of a home that makes it feel cramped, it's the furniture layout or the abundance of clutter for which there is no real storage.

Thank you, That definitely hits home. The kids and I moved from a 3 bedroom rental into his 3 bedroom home and most of my stuff is still in storage because there's just no space for it.

I've been operating on the principle that the most logical thing to do is to save up to buy a home, since we could rent out this one to basically cover the mortgage, but perhaps it makes more sense to put some money into making this place better. We could probably add a fence to the yard (so the giant Rottweiler can spend some time outside instead of underfoot), and a shed or a workshop with what we've saved to put towards a new house.

I have a feeling that even if I'm debt free, it won't help much with my credit, but I can at least get my medical stuff paid off and then just put aside the almost $2k I've been putting towards those bills.

dyslexiateechur said:   Thank you, That definitely hits home. The kids and I moved from a 3 bedroom rental into his 3 bedroom home and most of my stuff is still in storage because there's just no space for it.

I've been operating on the principle that the most logical thing to do is to save up to buy a home, since we could rent out this one to basically cover the mortgage, but perhaps it makes more sense to put some money into making this place better. We could probably add a fence to the yard (so the giant Rottweiler can spend some time outside instead of underfoot), and a shed or a workshop with what we've saved to put towards a new house.

I have a feeling that even if I'm debt free, it won't help much with my credit, but I can at least get my medical stuff paid off and then just put aside the almost $2k I've been putting towards those bills.


Go back and look at what SIS said to do about your credit. You came here for information but are ignoring some of the best information you've gotten. You can fix your credit but it's going to take some work. You are exactly right that if all you do is pay off your debt you credit is still going to suck for years.

dyslexiateechur said:   One thing I am pretty confused about:

What are the advantages of trying to do this the traditional mortgage path? It seems like this is probably going to be the most difficult anyway. I was always told not to borrow against the equity unless you absolutely had to.


That's what a mortgage IS.



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