Hello,
I have a questions for all experienced investors out there. I currently own a principal residence in Prince George, BC, as well as two suited single family dwellings in the same city. I have just met with my broker, and he advised me that as these houses are all in my personal name, I would have a hard time finding a mortgage company that would look "outside the box" as far as ability to service my debt.
My houses have never sat empty, and my credit rating is over 700, but he indicated that with the formula that the companies use, I may not qualify for another mortgage. He did say that an option was to transfer the houses into a corporation, and keep good clean books for two years, then the companies will use a formula that differes from the one that they use for personal. Both my rentals cashflow about $300/month after all expences, and they clearly make money.
I guess my question is this; I`ve found another "fixer upper" that I am looking at, but what options do I have if the mortgage companies say no? Should I transfer the houses into a corporation and wait a couple years? Should I do that anyway and look into JV for the next purchase untill the two years is up?
Any advise will help,
Many thanks,
Mike
I have a questions for all experienced investors out there. I currently own a principal residence in Prince George, BC, as well as two suited single family dwellings in the same city. I have just met with my broker, and he advised me that as these houses are all in my personal name, I would have a hard time finding a mortgage company that would look "outside the box" as far as ability to service my debt.
My houses have never sat empty, and my credit rating is over 700, but he indicated that with the formula that the companies use, I may not qualify for another mortgage. He did say that an option was to transfer the houses into a corporation, and keep good clean books for two years, then the companies will use a formula that differes from the one that they use for personal. Both my rentals cashflow about $300/month after all expences, and they clearly make money.
I guess my question is this; I`ve found another "fixer upper" that I am looking at, but what options do I have if the mortgage companies say no? Should I transfer the houses into a corporation and wait a couple years? Should I do that anyway and look into JV for the next purchase untill the two years is up?
Any advise will help,
Many thanks,
Mike
