2 questions on how to finance a 2nd property w/equity from existing home using a blanket mortgage?
1) I’m interested in learning the best way to purchase a second property, possibly at sheriff sale, using part of (40% ?) the equity in my primary residence (which I recently paid off) so I don’t have to liquidate as much stock to “come up with cash up front”… & 2) If required to provide a certified bank check made out to Lehigh County, PA. (10% of purchase price w/ remander being applied to the balance) and I am outbid or choose not to buy the property, how do I return the funds to my account?
From a financing standpoint, a home equity line of credit would seem to be the best option. You will only pay interest on any amount which you actually spend. If you obtain the certified check and are outbid, you can simply deposit the check back into your account and pay off the line of credit.
With regard to the type of sale you are attending, there are several issues which you should consider when purchasing at a Sheriff’s sale. You will need to know the priority of the lien which is the basis for the sale. In other words, the sale may not produce clear title to the property. There may be other liens which you will need to pay off or otherwise settle. Also, the properties are usually sold, as is, where is. The sherriff makes no representations or warranties regarding the condition of the property or title. You will need to obtain a title report prior to attending the sale to ascertain the facts. If you are not sure how to interpret the information on the title report, you may want to retain an attorney. If you need further information, you can contact me at email@example.com.
What Budget Software Should I use?
For years I’ve used Microsoft excel to track my expenses, I have my checking account balance at the top, and my budget categories (Mortgage, Car Insurance, Groceries, etc.) along the side, with all my transactions at the bottom. I’d like to be able to upgrade to a software that might be a little more automatic, but I don’t know which to choose.
I’ve tried mint.com, and I don’t like it at all, because I am unable to define the categories for my transactions. The most important feature to me is being able to define what I call ‘sub accounts’, and say which ‘sub account’ each transaction should withdrawl from. For example:
If I get a paycheck for $1000, I want to distribute it like this
$500 to mortgage
$200 to groceries
$150 to Insurance
$100 to Utilities
$50 to Fun
Then when I write a check to Geico for $300, I want it to come out of the “Insurance” sub account. This way I keep track of all my sub accounts together.
Having it go to my banks website and automatically download all my transactions would be a plus, but isn’t necessary. Thanks in advance for your help!
Here is the best program for you to use. It is a Microsoft MSDN Professional with Visual Studio 2008 Professional NOW full 24 Months of Subscription. With the MSDN Premium subscription, you’ll have several different developer tools that you’ll be able to use. These tools include Visual Studio 2008 Professional, as well as Visual Studio Tools for Office.
All businesses, schools, and other types of organizations will be able to benefit from the MSDN premium subscription, and there are plenty of reasons for this. Many people think that they can get along with just the basics, such as Word and a spreadsheet program. And this might be fine for just the person who is tinkering around on the computer and who isn’t going to be making anything of himself. However, as soon as you start having a business or needing to do things that a business or organization has to do, one of the things that you are going to have to think about is getting a MSDN premium subscription, because it will be the best way for you to get what you are looking for.
Here’s a link
msdn subscription price http://www.alwayscheapest.com/servlet/the-78/msdn-professional-subscriber-downloads/Detail
I operate off cash, will this affect me getting a mortgage? Why do lenders need to see my bank statements?
Ok first I know this question been asked many times but my question is a little different.
First off I mainly operate off cash only. I don’t have many bills so when I get paid on friday I cash my check, deposit funds needed to pay bills, then move on. Therefore I don’t keep a high average balance in my checking account at all times like many have said the bank will be looking for. Also I cash my payroll check at the same bank I’m trying to get a loan from and have operated for 3 years this way. So they can easily see that I cash the checks and only deposit a small percentage.
I told the banker I would pay my closing cost with cash and he said I would have to verify where the funds come from. I told him they was savings from over time. They kinda looked at me strange when I told them I try to operate off cash as much as possible. My debt to income is about 20% so I often cash whole checks without making a deposit. I keep a little debt just for my credit.
As I see it they can look at my credit report and see my debt, compare it to my W2 and see how much money I have left over. Why should I be punished because I don’t operate like most everyone else??? I understand the lender trying to protect themselves and could understand if I couldn’t show a verified income that more then covers the payment, but I can prove good income with the same employer for several years and a very good dti. So should I be worried?
Also further note they done the electronic prequalifying and was accepted.
Thanks in advance….
Using a lot of cash isn’t a good choice, especially for this very reason.
Basically, everyone is suspicious of anyone paying a large amount in cash. They worry it could be counterfeit, stolen or money that people are trying to launder from selling drugs or other illegal activity.
Cash is not trackable and in order to get a loan, you need to have a long term track record showing that you can afford the payments. I would stop doing your finances this way and do things in a way that’s better tracked.
Use excel to estimate bank balance *Problem solving*?
I would like to use excel to estimate the balance of my “bill paying” checking account over the course of a year. My wife and I split the house bills. I take the mortgage Uverse and my cell phone. My total of share in the bills is about 1473 a month typically. I recieve a salaried weekly paycheck so I determined that I need to take $369 a week from that paycheck to pay the bills. I will go ahead and start the bill paying account with enough money to pay all the bills for a month ($1473).
So is there a way to put a calendar into excel and make it show the balance of my checking account? The constants would be: Starting balance of $1473. Every monday $369 is added to the account. The following amounts will be deducted on the same day every month: 1st $1203 16th $170 25th $100
This requires some knowledge of Excel techniques.
The best way is to create a sheet for each month. Name the first tab May 2012. Dates in column A, additions in column B, deductions in column C, balance in D2.
Column A MUST be correctly formatted for dates. Tip: in A3 put the first day of the month. In A4 put =A3+1 and drag down the column to the end of the month.
In B2 put your opening balance.
In B3 put this formula:-
and drag down column B to the end of the month.
In column C put your deductions against the correct dates.
Your balance in D2:-
Once your sheet is properly formatted with currency symbols etc, Ctrl-drag to create a copy. Re-name the tab to Jun 2012. In A3 enter the first day of June, the rest of the column will adjust itself. In B2 put = then navigate to D2 on the first sheet, and enter.
You shouldn’t need to do anything else, just copy the sheet across every month and adjust the date.
Have you ever used an Equity Line to pay the mortgage on an Investment Home?
I currently have a 15 year fixed mortgage on my investment property (my old house), with about 8 years left to pay. I have some GREAT tenants in there, but they are unhappy with my homeowners association’s constant bickering about every little thing they do wrong (too many cars parked at the property, a “loud” car for crying out loud), bottom line, they might leave. I make decent money, but not enough to cover my current home’s AND the investment home’s mortgage without rent check help.
Being that I’m fairly new to the real estate investment game, is it normal to occasionally dip into the Equity Line OF that property to pay the mortgage on months I don’t have a tenant paying me rent?
I owe $74K on this property with a $100K equity line (currently with a 42K balance), in case that helps.
I failed to mention it was my OLD house & the current tenants have been there about a year & a half…the association recently changed companies & the new HOA seem to be run by NAZIS!
The equity line is for the benefit of this rental, right?
It would seem the paying the mortgage would fit that category
it seems odd that the tenants have lived their 8 yrs and were able to comply with the assoc.’s rules all this time and suddenly having problems? Are the extra cars their teen agers or are they letting some relatives move in with them that were not there before?
The rules are for the benefit of everyone, including them, the probably don’t appreciate loud car noises from neighbors either
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