All Forum Posts by: Alex Russell

Hello @Rene Perez, I would use Ithink Financial. This is normally who we refer people to use. 

I have pasted a link below for you, hope this helps! 

https://www.ithinkfi.org/

I agree with @Jeff Copeland, a HELOC will be your best bet

I would definitely engage with an attorney that practices in the state of the property you are funding, this will help ensure they are familiar with the state-specific laws, etc 

We have a few really great attorneys in FL and GA that I could recommend if you'd like.

Hey Casey, 

We have a great deal of investors in that area that are always looking for investment properties. 

Would love to connect. Will DM you my contact info 

Hi Fulton, check your inbox, I just sent you 2 that we work with very often. 

Hey there @Aaron McCracken,

iThink Financial is who I usually recommend to my clients. 

https://www.ithinkfi.org/

I hope that helps! 

Hi @Lisa Miller,

We specialize in the FL and GA regions, would love to connect with you. 

Hey there @Daquille Ferguson,

Here are a few tips:

Think About Loan Terms

Cash-out refinances extend the length of your existing mortgage loans, while HELOCs add a second loan to your current time frame and therefore an additional monthly payment. So, if you can’t reasonably commit to the additional monthly expense, the cash-out refinance is probably a safer option.

Consider Payment Options

You should also consider how you'll receive your funds. If you're in need of a one-time, lump sum of money to be used for a renovation or personal expense, a cash-out refinance will be simpler. But if you prefer to have access to your funds over a span of time, you'll be better off with a HELOC, as the draw period typically lasts around 10 years and you can use your money as needed during that time.

Compare Rates

Rates are always a key factor when comparing loan options. For homeowners who prefer fixed rates, a cash-out refinance will be more comfortable, as their payments won’t change over time. But if you’re comfortable with an adjustable rate, HELOCs may offer you access to more equity overall.

Estimate Closing Costs

If you want to pay less upfront, HELOCs may be a better option. This is because refinancing incurs closing costs, while HELOCs typically do not.

When calculating closing costs, you should also consider private mortgage insurance, or PMI, as it applies to refinancing. PMI protects your lender if you stop making payments on your loan, so if you make a down payment of less than 20% on your home, your lender will likely require you to pay PMI. In some cases, taking on a HELOC can help you avoid paying for PMI altogether.

Don’t Forget Taxes

There are also tax implications of refinancing versus taking out a line of credit. The IRS views refinances as a type of debt restructuring, which means the deductions and credits you can claim are significantly less plentiful than when you got your first mortgage. Because refinances are considered loans, you would not need to include the cash from your cash-out refinance as income when filing your taxes.

Depending on what your cash is used for, it may or may not be tax deductible. With both cash-out refinances and HELOCs, your cash will only be tax deductible when used for capital home improvements, such as remodels and renovations.

I hope this helps!

Hey @John Michael,

Those are both great choices. 

In my opinion, I would utilize a hard money lender to leverage your money. 

You can utilize a larger sum of money with only a portion of your HELOC monies.

This could also give you the ability to take on a second deal at the same time. 

Hey @Montana Strunk,

Most private lenders will want to see at least the following:

Property Location, project summary, scope of work, and AIV & ARV. (Others such as credit or experience don't normally play a role in the deal being declined, but you may get a higher rate or more points at closing if these items are not optimal.)

The best advice I can give you is to simply paint them a picture with the data above as to why it's a good deal. 

If they can get a clear understanding of what the borrower is looking to accomplish and the metrics make sense (AIV & ARV), then you shouldn't have an issue.

I hope this helps!