thank you to all the broke *** MoFo's in my town....

[bimma85 5,000+ posts]

I went to my bank today to apply for a loan to buy my second duplex and guess what? Since there is a 62% foreclosure rate in my Fk'n town, all the banks are requiring 20% cash down payment or some other form of equitable collateral. The duplex i was trying to buy was $110,000, so they want $22,000 down plus closing costs and what-not. I just have that kind of cash readily available. So thanx to broke people, they are making it hard for me to make money....

Its getting to be that way all over the country //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif. Is your bank a smaller local bank or a big (we don't give a **** about you) bank?

 

[bonesninja 5,000+ posts]

definantly know its tough times when you cant get a second mortgage without putting down any money.

its not a second mortgage...its a first mortgage on a second property. Two tottally different things

 

[bimma85 5,000+ posts]

i loled

 

[bonesninja 5,000+ posts]

Its getting to be that way all over the country //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif. Is your bank a smaller local bank or a big (we don't give a **** about you) bank?

its a small local bank....they have lost their *** in the home loan market here.

 

[bonesninja 5,000+ posts]

lol @ your quitting spirit. a bank telling you [no] is like a girl telling you [no]...they really mean [yes] but only with some convincing. I seemed to have missed the part where he said he sat with the branch manager to discuss his finances further and prove he's actually worthy. But of course, it didn't happen...because like they assumed when he walked in -- he'd give up just like the rest of the 62% of teh brokemofo's when things got somewhat difficult.

and i'm not quitting...it'll take me about 7-8 months to save the money...then i'll buy

 

[2002XLT 5,000+ posts]

its not a second mortgage...its a first mortgage on a second property. Two tottally different things

Yes but its YOUR second mortgage right?

And calling it a rental isnt getting around the fact that its in your name, if you dont have rentors, and dont make enough money to pay both mortgages and still have 50% DTI, your not going to get a loan without a large down payment.

And it is the bank protecting themselves, they have had to get a ton sticter so that they could stay in business, some of the largest mortgage companies have gone bankrupt, they are protecting their ***.

 

[bimma85 5,000+ posts]

its a small local bank....they have lost their *** in the home loan market here.

What kind of a business plan did you present them with? Did you happen to to talk to any other banks?

 

[deaf tones 10+ year member]

the bank isn't protecting shit...the second property is a rental. What are they protecting me against? If i really want the money, i could just borrow against my 401k but i choose to leave that money alone.

from the broke fools that will eventually leave you hanging on the rent $ that you need to pay off the mortgage.

You have options and you're not taking them...instead, coming to an audio forum to b1tch about it -- that's exactly why you're not getting the fuxing loan. Borrowing against your 401k = all the interest you pay...is paid back to yourself instead of the bank. The market is sh1tty right now and that 401k is probably losing you money as we speak. Might as well make your money work for you instead of sitting here b1tching about living in a fuxed up town.

 

[bonesninja 5,000+ posts]

Exactly. Why wouldn't one borrow from their 401k?

its very simple math.....yes you pay yourself back with interest BUT the money borrowed DOES NOT earn like the other money in my retirement. My 401k is growing at a 12.5% rate, the interest i would pay myself is 6%. I lose 6.5% of growth for as long as it takes to repay the loan. I have 25 years til i retire, it is much more important for my money to grow now than it is for a guy with say 5 years left til retirement.

 

[bonesninja 5,000+ posts]

from the broke fools that will eventually leave you hanging on the rent $ that you need to pay off the mortgage.
You have options and you're not taking them...instead, coming to an audio forum to b1tch about it -- that's exactly why you're not getting the fuxing loan. Borrowing against your 401k = all the interest you pay...is paid back to yourself instead of the bank. The market is sh1tty right now and that 401k is probably losing you money as we speak. Might as well make your money work for you instead of sitting here b1tching about living in a fuxed up town.

my 401k is earning like a ***** right now...not gonna touch it. in 8-9 months i'll put the cash down and buy my second house.

/thread

 

[deaf tones 10+ year member]

401k /= solid retirement plan. Everyone needs a side hustle outside of the 401k or they'll be relying on the soon-to-be-non-existant social security. Sounds like you're trying to make property your retirement plan.

Will that property earn you > 12% return in the long run?

 

[bonesninja 5,000+ posts]

Yes but its YOUR second mortgage right?
And calling it a rental isnt getting around the fact that its in your name, if you dont have rentors, and dont make enough money to pay both mortgages and still have 50% DTI, your not going to get a loan without a large down payment.

And it is the bank protecting themselves, they have had to get a ton sticter so that they could stay in business, some of the largest mortgage companies have gone bankrupt, they are protecting their ***.

i do make enough to make both mortgages and then some..

 

[Bigrick31 10+ year member]

i feel ya i tried talking to a realistate agent and because of the way the economy is right now i cant qualify to get a house for another year or 2 that means i gotta throw my money away and rent until i can buy

 

[bonesninja 5,000+ posts]

401k /= solid retirement plan. Everyone needs a side hustle outside of the 401k or they'll be relying on the soon-to-be-non-existant social security. Sounds like you're trying to make property your retirement plan.
Will that property earn you > 12% return in the long run?

more in the long run. i'm actually planning on using the rentals as my "primary" income and using my actual job income to load up my 401k to make a run at early retirement...at which point i will sell all my rentals off and enjoy the down time. I'm also going to school this summer to get my real estate agent license so i can take advantage of what is happening to my town.

 

[2002XLT 5,000+ posts]

i do make enough to make both mortgages and then some..

And still have a DTI better then 50%? Then i have no idea why they denied you, banks need good investors a lot more then they need a bunch of empty lots. I can understand being strict, but i feel that by denying GOOD investors, they are shooting themselves in the foot. There needs to be middle ground.