All Forum Posts by: Andrew Neal

So a few months back on a different thread @jorge ruiz brought up this idea and I was curious if anyone has does this or if it's possible.

You create an LLC. You buy a home. Your LLC gives you a loan for the home. You file the deed for that loan at the county courthouse. You use the money from the LLC to buy and fix up the property. Once the property is completed, your conventional lender comes to refinance the loan. Your conventional lender runs title and sees there is a loan. Your conventional lender refinances you into a new loan, and cuts a check to your LLC in the amount of 75% of the value. Please don't confuse this 75% with a "cash out" amount. The non-cash out LTV on a refinance is also 75%. We are refinancing a mortgage. Your LLC's mortgage. Essentially your LLC has become the bank/hard money lender/etc. However you want to think about it. You get to set the interest rate (it can be 0%) and you get your investment amount back sooner.

One thing that makes me think this may not work is the fact that you own the LLC and also are purchasing the property? Maybe @Chris Mason has some knowledge to drop. 

@Bob Okenwa I have recently heard of folks adding their renovation costs right into the hud and therefore able to get all or most of their cost plus renovation costs back upon refinancing.

@Account Closed sorry I'm so late to this thread! That's an interesting strategy. I wonder if this will work or if there's any unforeseen issues or things that would be red flags to a lender come time to refinance.

@Prasad Gupta If you're married you shouldn't be hit with capital gains since the limit is $500K, touch base with your lender.

I believe it could have been handled better vs. an all out ban (with the exception of the small core area). I have already talked to a dozen or so of my friends here who frequent the area and all have mentioned choosing different destinations in the future. I am concerned for the small businesses and anyone who's reliant on tourism it's a bummer.

@Eric Carr I saw that as well, so ridiculous. 

I agree that looking for another job should be priority for the above mentioned reasons. Also if you change careers keep in mind that lenders typically want to see a minimum 2 years history in that field. Key here is staying in the same or similar field. I changed jobs prior to buying a primary residence but since it was in the same field (marketing) the lender was fine with it.

You can also still get your license and dabble as an agent while working a full time job.

Just my two cents!

@Bill Cereske sorry to hear how this is impacting you already. 

As @Cheryl Vargas mentioned many of the people utilizing these STR did so for the very reasons she mentioned. Away from the traffic and chaos of the core area. I have zero doubt this will negatively effect SLT as a tourist destination.

If the hotels think that these tourists (me included) will choose an over priced smokey casino for my family they're mistaken. North lake and West Lake will become more desirable

I see a lot of members post about being self-employed so I was curious if you are what sort of business do you own? Not necessarily those who have made real estate their full time gig but rather do you own a car dealership, cleaning company, software company etc.

I currently work a W-2 job but have also run my own marketing agency for nearly 7 years.

@Walter Anderson what a neat and tidy first deal, well done.