All Forum Posts by: Gary Burnham Jr.

I started investing my solo401K with Equity Build Finance since June 2013.   I have received every interest payment to date and am looking forward to continuing a successful investing relationship with Equity Build.  To feel more comfortable with the process of investing with Equity Build its important you understand how bridge loans work, exactly how the process of commercial lending works, and how cash flowing property works.  It helps if you own property yourself collect rents and have gone through the refi process yourself.  This will help an investor become more educated which will help them make a better decision.  Since working with EB for the past 3 years I can say that they have made an honest commitment to improve customer support and communication and any adversity they have encountered they have handled with integrity.  My real estate consultant that has been assigned to me has done a fantastic job of working with me and answering any questions I have had.   If anyone is thinking about investing I would be happy to give you my Equity Build Real Estate Consultants name.  He is very knowledgeable and gets back to me asap.   Like I stated earlier 36 months 0 payments missed.  

Chris, My thoughts would be to free up the rents coming in. I understand it could possibly be more risky with variable rates on a HELOC more costly appraisals etc. not going to do this but wanted to get feedback on the topic and wondering if anyone has done this before. Do you know if banks are doing Elocs on rental property?

I would like some feedback on a strategy to payoff my mortgages and free up the cash.  

Mortgage #1 pay off using personal cash

Get a ELOC on prop#1 to pay off mortgage #2 and then get an ELOC on prop#2 to pay off #3 with all the properties being the same value the ELOC would completely pay off the note.  Thoughts?

Thanks everyone, all good advice.  Mike H., The lender said for me to do the cash out refi with either a 3/1,5/1,or7/1 arm then technically they can refinance the same houses into a 30yr fixed 6months later because I'm not taking cash out.  I don't think I will do that though as in 6months I would have to order new appraisals and if for some reason they came back lower then I'm not only paying another closing but paying money back at closing.  Based on what I'm reading I think my best option is take the 7/1 arm at 4% 30yr am schedule and refinance into a 30yr fixed within the 7yrs.  

please help me get to the bottom of this.  I currently have 6 financed rental properties. 1 is owner occupied.  I am trying to do a cash out refi on the 2 most recent purchases to get the cash out I spent to fix them up.  Lender says sure we can help.  After purchasing appraisals and going through the process the underwriter says "wait" there's a new guideline in place as of may27,2014 that says anyone with more then 4 financed properties cannot do cash out Refis into a 30yr fixed  on investment properties.  My only option is to do a cash out with a 3/1, 5/1, or 7/1 arm.  The lender then said I could refi again into a 30 yr fixed in 6months.  My thoughts are to shop around now but not sure the appraisals will be accepted by a new lender. I feel mislead by e lender they said they could do this.

Adam, I was concerned about the same thing here on the east coast in CT. After my first 3 family property I was confused as to how I would qualify for another loan. I received a lot of different information. I sat down with my mortgage broker and asked him exactly what counts toward measuring the debt to income ratio when considering me for another loan. He said that if the property is cash positive and I could prove it jthrough my tax returns then it would not count against my debt to income ratio when the bank does the calculation and considers to loan me money for properties 2,3,4,5, etc........ He was right because I am up to 3 properties all financed with 25% down. None of the properties added to the debt side of the ratio because they are all positive cash flow properties. I hope my feedback can help. thanks

Bryce, I only speak from the 3 investment properties I have purchased in the past two years so I am no expert but thought I would share my experience and thoughts. A couple things that caught my eye. "The property is in a not so good area of town" This is a red flag for me as everyone that has coached me to buy properties said "there is no such thing as overpaying for an investment property in a prime location, but there is in a not so good location." lesson is do your due diligence on the vacancies, crimes, etc... around the area. Listen to what the community feels about the area because when potential renters ask around if there is a lingering negative stereotype about the area it will be difficult to get good tenants. PMI insurance. My thoughts are to avoid this unecessary expense at all cost if you can afford to. Your goal is to pile on more cash flow to get into your next deal. PMI cuts into the cash flow. Repairs, you have no idea whats right or wrong with the property until an inspection is done. If the inspection turns out there are lot of problems you can ask the seller for credits and you can ask the seller to pay closing costs to reduce your cash out of pocket expenses at closing. Hope this helps you get closer to making a decision.

thank you everyone for your input. This helps as I realize I have some homework to do and some shopping to do when I want to get into mortgage 5-10. My broker had told me I could only do portfolio loans. I will shop this out. thanks again.

I currently own the max 4 mortgages on 3 investment properties and 1 residential home. I am going to purchase more rental ivestment properties in the future. Has anyone heard of the new rules regarding multiple mortgages? I am under the understanding my only option would be a portfolio loan on the 5th mortgage. Is this correct? Are the interest typically higher on portfolio loans? Any information would be greatly appreciated. Thanks.