All Forum Posts by: Dave Van Horn

Sure thing Pat, happy to help.

The short answer is: higher than whatever your HELOC rate is, i.e. probably north of 4%. Personally, most of my equity investments are 10% or more. And if I can't find anything like that, the beauty of a HELOC is I don't have to borrow the money (or pay to borrow it) until I want to use it. Best of all, my HELOC is liquid and it gives me asset protection through debt.

Best,

Dave

Sure thing.

Best of luck!

- Dave

@Chaim K.

Although I haven't personally lost money on tax liens, some things I learned about them compared to notes over the years, generally speaking:

- tax liens are safer lien position (i'll give 'em that)

- tax liens are slower to reward than notes, with virtually no cashflow

- i found it harder to deploy large amounts of capital with tax liens vs. notes. Notes always seemed more scale-able to me.

- tax lien deals are shorter terms (with 2 or 3 year terms at most), generally speaking a mortgage note could be much longer (with 20 to 30 year mortgages - with cashflow)

Doesn't mean they're not worthwhile though! I'd recommend connecting with experts in the space. Joanne Musa is definitely one of those people and worth seeking out. Hope this helps!

Best,

Dave

Hi Kathleen,

Welcome to the site! I would recommend checking out your local REIA or try searching Real Estate groups in your area on Meetup.

Best of luck.

- Dave

A general contractor could also help. Some plans can be found at a material supplier as well (like a lumber yard). Doesn't guarantee you'd get approval, but I was approved for a building once with an $8 plan I bought from an 84Lumber ;)

Best,

Dave

Hi Yinna,

I would recommend talking to Craig Zappetti. He's a securities attorney who also specializes in entity structure, plus he's local to you (in NJ with his main office in Philadelphia).

You can find his info here:

https://www.fisherbroyles.com/craig-zappetti/

Best of luck,

Dave

@John Baughman

I would also contact a commercial broker (and/or call an environmental company) about the possibility of performing an environmental site assessment and if it's necessary. It may be a worthwhile deal but depending on the Phase of the assessment required, it could cost a few thousand dollars minimum - you can write this into the agreement of sale as a contingency to cover the necessary costs.

Best,

Dave

Good question @Kris Calhoun

The lender may want bank statements, tax returns, W-2's, pay stubs, residency history, driver's license or proper ID ,etc.

They'll also probably order an appraisal, credit check, as well as check the title on the property.

Best,

Dave

Hi @Andrew Great,

It's usually what's customary for that area. I've never determined the value myself personally, but my accountant has. So most accountants should be able to do what you're looking for.

Best,

Dave

@Pat Coogan

I used to think the same way! After utilizing my equity on my entire portfolio for years, I think the complete opposite today. Now I often ask friends and fellow investors, "what's the rate of return of the equity in your property?" to get them thinking.

To answer your question, yes you should be able to do a second refi with either a bank or a private lender.

Best,

Dave