Buying Single Family Homes

[Shadfisher]

What is the name of your state? CA

I am cruious to find out if something my husband doing is legal. In addition I do not understand how is is qualifying for the loans. He is buying single family homes under his name in Las Vegas. Over the past two months he has bought 12 homes and 3 more just this week. Each home is at around $300K. All of the paperwork is in his name. I do not know how he is qualifying for the loans. His annual salary is only $80K per year. How can loan companies loan someone close to $2M dollars in just two months. I just do not know how he qualifies for this kind of money. Is it legal to buy property like this? I do not see him stopping and wanted to know if it is legal.

 

[HomeGuru]

What is the name of your state? CA

I am cruious to find out if something my husband doing is legal. In addition I do not understand how is is qualifying for the loans. He is buying single family homes under his name in Las Vegas. Over the past two months he has bought 12 homes and 3 more just this week. Each home is at around $300K. All of the paperwork is in his name. I do not know how he is qualifying for the loans. His annual salary is only $80K per year. How can loan companies loan someone close to $2M dollars in just two months. I just do not know how he qualifies for this kind of money. Is it legal to buy property like this? I do not see him stopping and wanted to know if it is legal.

**A: I don't know either. Maybe he is having some casino owners co-sign the loans.
Have his mortage broker post and let us know.

 

[amortgageman]

There are several ways he could be doing this. Stated income loans will allow him to merely state his income, not prove it. There are also "No Document" loans as well. If his credit score is high enough, all they do is check with his employer that he is indeed employed.

There are many people that own upwards of hundreds of homes. In theory, yes it is legal to own twleve homes. There are some sham artists out there, but with what little information is provided here, the answer is yes.

Let's just hope that they are rental properties and he will gain from rental income. They could well be distressed or foreclosed properties, and he wants to re sell them at market value and make money. There can be alot of income coming from investing in something like this.

What is his reasoning for buying all this real estate? Is the proper title work being filed with ownership, etc.?

 

[Shadfisher]

buying single family homes

I think my husband is buying a lot of new home starts and then he plans on turning the homes around at the time they are built, so he profits from the increased appraised value, and does not ever take ownership of the home. I do think his back up plan is rent the home if it cannot be sold. he did that with one of his homes. The reason he is buying theses homes, he says is for his retirement plan. I am concerned that he will do his taxes properly and he will report profits etc. I have decided to quick deed the properties over to him solely because I am concerned he is gettign out of control on his liability for these loans. So Iguess you can buy hundreds of property and not have to live in the property. Could he also be using some of the properties he is purchasing as any kind of collateral for the next loan?

 

[HomeGuru]

I think my husband is buying a lot of new home starts and then he plans on turning the homes around at the time they are built, so he profits from the increased appraised value, and does not ever take ownership of the home. I do think his back up plan is rent the home if it cannot be sold. he did that with one of his homes. The reason he is buying theses homes, he says is for his retirement plan. I am concerned that he will do his taxes properly and he will report profits etc. I have decided to quick deed the properties over to him solely because I am concerned he is gettign out of control on his liability for these loans. So Iguess you can buy hundreds of property and not have to live in the property. Could he also be using some of the properties he is purchasing as any kind of collateral for the next loan?

**A: good grief. He's YOUR husband, ask him.

 

[amortgageman]

Sounds like he is financing a construction company to build homes. Profitable, but with increased risk. I thought maybe he was buying distressed properties or foreclosures

Are all these loans with the same lender? Is it a hard money lender? Really getting a little suspicious myself. Who is his guiding hand (other than you!)? Another consultant in the office here wants to know that one so we can sign them up, because some of his clients are active real estate purchasers.

How are you quit deeding him property? Are you signing on these loans as well or are you only on title?

 

[Shadfisher]

Funny you say to ask my husband, he will not tell me anything. In fact we are getting a divorce right now. I am jsut concerned about getting stuck with any problems he continues to create. I am not signing the loans, I am only signing the title paperwork, releasing me from the title, since I live in a community property state (CA) and he is buying the property in Las Vegas ( I guess a hot real estate market, he says). Can you tell me what a Hard Lender is? I do not understand the term. I think my husband learned how to buy this real estate by listening to some cassette tapes on the subject. I still just do not understand how he can obtain so much money in credit over a short period of time. I am just worried it may come crushing down some day. Do you think I have any liability if I am not signing the loan documents and I am releasing the title to the properties?

 

[HomeGuru]

Funny you say to ask my husband, he will not tell me anything. In fact we are getting a divorce right now. I am jsut concerned about getting stuck with any problems he continues to create. I am not signing the loans, I am only signing the title paperwork, releasing me from the title, since I live in a community property state (CA) and he is buying the property in Las Vegas ( I guess a hot real estate market, he says). Can you tell me what a Hard Lender is? I do not understand the term. I think my husband learned how to buy this real estate by listening to some cassette tapes on the subject. I still just do not understand how he can obtain so much money in credit over a short period of time. I am just worried it may come crushing down some day. Do you think I have any liability if I am not signing the loan documents and I am releasing the title to the properties?

**A: ok, can I be frank with you? Hire an attorney like yesterday. If you have a divorce attorney, tell all to your attorney. If not, you need one in a big way.