All Forum Posts by: Charles Carillo

@Bradley Perry

It really depends on the fees for the refinance. My initial thoughts would be that adding $23k in value is not enough to justify a refinance. Possibly adding more value and then doing a refinance will be your best bet and highest ROI.

@Clayton Bray

I would suggest finding one right away! A good CPA will pay for themselves in the first year. Finding a CPA via referral is what I have found to be the best way.

@Nicolas Landeta

I would suggest having your potential partner and yourself, speak to a CPA or attorney who works with foreign investors. They will be able to discuss setting up a joint venture LLC while minimizing tax exposure for both of you.

@Noah Kellar

You can speak to a local residential mortgage broker and they will be able to help. You can receive a referral from your real estate agent.

@Manuel Rivera

I would reach out to all local banks and credit unions in the area of the property. If you are doing a value-add play, local banks and credit unions usually have minimal pre-payment penalties when compared to agency debt and allow you to choose a 5 or 10 year term. I have gotten a 25 year term from a local bank before but that is not common. When dealing with a local lender you can negotiate pretty much everything. Make sure that your contact at the institution has done a similar loan before.

@John Beede

Co-signing on recourse debt is risky; not saying that 50% of the deal is fair or not but it should be taken in consideration along with who is managing the deal, putting in the money etc. Are you able to find another lender or co-signor?

@Nycholas Burns

Yes, owning your primary residence is a great way to start your real estate journey; I would suggest house hacking a 2-4 unit property with a FHA loan. Speak to a local mortgage broker so they can prep you for purchasing a property.

On another note, renting is not throwing money out and there is nothing wrong with renting until you are ready to purchase your primary residence.

@Andrew Freed

Is there any debt on your rental units? Have you added considerable value to them? If so, you can look to refinance those and split proceeds between paying down your HELOC and your next investment. Another suggestion would be to possibly work with a partner on a future deal...a partner with access to more funds.

@James C Toland-Yeh

First off, I would speak to the private/ hard money lenders you are planning on working with and find out what they require before you send them a deal to fund. Some of this information you may be able to prepare and send to the lender before you ever have a deal (i.e. resume/track record etc.). Once you have a deal, different lenders might have different requirements and processes. I would speak to them and find out what they want to see on every deal so once you have a deal; the process will be as simple and straightforward as possible.

@Jacob Paisley

The cleanest way of working with a private lender is to have them put a mortgage on the property. They send their funds to the title company/attorney and they are now secured. Everything is clearly spelt out in the mortgage to avoid issues. Make sure they have legal consul as well. It is up to you and the lender to determine; LTV, fees, terms etc.