need some creative financing help?
Hello everyone,
I am a brand new investor and I have been in the real estate business for just about five months. I am looking to buy my first few properties. I have lived in southern California for the past six years, and before that I spent the last twenty years in Kansas City. I have been looking at turnkey properties for buy/hold in the KC area since I am very familiar with the areas and it is only what I can afford at this point. I have a few issues. I need money for the down payments for the properties. I have the money, but I wanted to ask for advice on what is the best way to attain it. Here is my financial situation:
- I own my my house with no mortgage. I paid cash for my $739,000 home and my dad helped me out by giving me $150,000 towards the home in an irrevocable trust for my 3 yr daughter. The rest was my hard earned savings. I have been trying to get a heloc, but know one will approve one with a irrevocable trust on the property. Some banks say I can see if my dad will lift the trust and then I can get a heloc and then he can put the money back in the irrevocable trust.
- I have about $100,000 in a etf fund in the stock market that yields about 9% and I get a dividend every month which I then use for our property tax payment every year. I was thinking I could cash it out and just pay the property taxes in whole next year and just use the rest of the money for my investment property.
- my wife and I both work and I am a new real estate agent and I work all day everyday and then I work at a restaurant five nights a week. I am just trying to find the best way to make use of my finances so I can start investing. Our income together - we do not produce a lot of savings yet - as my real estate career is new - and living in Cali is not cheap!
I would just like some advice. I would ask my dad about lifting the trust but I was burned about 15 years ago when my grandmother gave me about $90,000 to buy a house which I did in Kansas City. It was my very first house. Well about 3 years later I had a "good" friend of mine talk me into buying some real estate in Miami, Fl. It all sounded good, but long story short, he had no skin in the game, and I lost it all. My dad has yet to look past that. I have learned so much in five months just by reading, listening, talking, networking, that I am ready to take another leap of faith. Any advice would be helpful.
Thank you for your time.
Scott Winnie