All Forum Posts by: Guifre Mora

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I'm new to the real estate investing world and unfortunately am having an issue with my LLC partner (also my ex) and will have to buy him out. As of just recently, we currently own one house that needs to be gutted and has back taxes that need to be paid. We were planning on using it as a rental property when it is rehabbed. Both my partner and I put an equal initial investment into the business when we started it. However, my partner has not done any work yet, nor does he plan on doing any work in the future. I on the other hand have done all of the real estate agent duties along with the usual investor work and I am currently doing the gutting. We have not had a contractor work on the property yet. How would I calculate buyout amount and how would that work if the business needs the initial investment funds for the rehab on the property? Otherwise, the property will just be sitting until I can get a second job and save enough money for it. And the first thing desperately needed on the house is a new roof. There is no operating agreement (I know, stupid) and I am in Illinois if that matters. I plan on getting an attorney but I'm just wanting to prepare myself. Thanks in advance.

I need to find a good Tax Strategistin in the Jonesboro, GA area. I need to make some decisions before the new year. Does anybody have some referrals?

Newbie questions.  I'm analyzing 2 properties as serious contenders for my first deal (long term rental).

Would you pick a lower CoC in a "better" area or a higher CoC on a "lesser" area? Neither area looks like "Escape from New York".

Are there considerations on triplex vs duplex or is it just a simple CoC consideration?

Thx.

@Guifre Mora Thanks for the response. To my knowledge, it was the underwriter for the loan who brought it up while the loan was under review today.

Hey all,

I am currently under contract and ran into a big curveball weeks into my purchase. I’ll explain:

I am currently renting a house in St Petersburg, FL with a detached garage/apartment on the property, which my landlord uses for AirBnB.

Recently, my landlord came to my girlfriend and I saying he wants to sell the house. After some thought, we figured we would offer to just buy it from him, with the idea in mind that we could supplement much of our mortgage with the detached guest house.

After lots of conversations with a lender, I was pre-approved for the ~$300K the owner wants, and I was able to work out a Conventional loan with 5% down, owners pays 3% towards closing costs (he’s a good guy and agreed). My dad also agreed to co-sign with me because, well, Covid-19 currently has me out of my second job temporarily.

With all this seemingly worked out, my dad and I sign the contract for the house purchase, sign the loan application, and have an inspection done last week. I also dropped a check off to the title company.

Now here’s the real knife to the heart- I get a call this morning from my lender telling me that my the property is zoned as a multi-family home (duplex) and not a single family home... meaning that I can no longer do a conventional loan with 5% down. The MINIMUM is now 15% down, or $40,000+ ! There is no way that can happen.

And forget about FHA, since my girlfriend is currently not working till further notice.

Why this wasn’t brought up much earlier in the process is beyond me. It took getting it to the underwriters this late in the game to inform me of this situation.

So the question I have now is, is there any way around this apparent rock-solid rule of 15% down? Or maybe even more realistically, could my landlord contact the county and have the property rezoned into a single family home so that my original down payment of 5% could work? I’m truly devastated about this situation and really don’t want to lose this house.

Thank you for reading!

@Guifre Mora i got a FHA loan so its 96%. I have a 3.1% rate. If i refinance to get a streamline it will be 3.7% so thats the reason why i wont refi. My interest rate is great

Hey folks - was on the phone earlier with a loan officer at my local bank. Getting my feet wet. Asked about 30-year loans on commercial properties (since rentals are classified as commercial properties, I learned). He said there really is no such thing as a 30-year loan on a commercial property. 15 years, but not 30.

So, I'm puzzled - I've heard tons of folks on the BP podcast say they have however many rentals, and they are 30-year loans, and their tenants are paying the monthly loan payment, and so on. I've heard similar things in the BRRRR discussions - they got a hard money loan, rehabbed a property, then refinanced their rental into a 30-year loan.

Am I confusing terms? Or am I missing something? Is refinancing a rental (commercial) property (say one that you purchased and rehabbed with hard money) into a 30-year term totally different from trying to purchase a rental (commercial) property with a 30-year loan?

I got a 4plex under contract. I need 30k+ in repairs but I already have property in acquisition. Is there or can I get a second mortgage to rehab the property for a 30 year period? If so Someone tell me how or who

@Guifre Mora

Thanks.I am just contemplating if it's a good idea to switch to ARM or 15 year loan and wondering what other investors in the same boat may be doing.