All Forum Posts by: Jason G.

I have contacted five national lenders, and all of them discontinued offering HELOC products as of Nov. 1, 2018.

1. Curious- anyone know why? Is it the new tax law restricting their use? 

2. Outside of a traditional second mortgage, where I take all of teh cash at the settlement table at one time, are there any other work arounds or similar products to replace the HELOC?

I want to access the equity in a home to purchase another, and I don't want to refi the whole thing. The first mortgage will be paid off soon. I want to pay off the second mortgage, and take out more equity. 

P.S. I have tried multiple times to "search a forum" and it will not let me use the Loans, Mortgages.. Conventional Financing" Forum for this post. Frustrating. What am I doing wrong? 

I found a multifamily property that is open to owner financing the entire property, but I do not have any money for closing costs Is it possible to add the closing costs to the note the seller will be holding, if the seller pays closing costs? 

Example - Seller agreed to finance 600k deal

Closing costs - 18k

New agreed upon price is 618k (18k over list price) because they are paying closing costs

Deal will still cash flow

What other methods are there to solving this issue?

Thanks

Jon

@Jason Gines

Jason would you share whether you formed a business entity to accommodate the Roofstock purchase? If so would you share your rationale for the type of entity(ies) and the state or states they were formed in? Thanks

@Jason S. I don't fully understand the transaction and how the profit-center is built in for Roofstock...so, are they an agent/broker...or just a facilitator?....are they just hocking MLS-listed properties or actually sourcing deals? Do they get a commission?...anything else you could add to this line of questions?

I'm in contract on a Duplex and the closing is Monday. Its friday and me realtor just called and said the seller can't close because there is a tenant in one unit that won't leave. (The tenant is also behind on rent.) I required that the unit be empty before closing because it needs work and the renters were behing on rent. So I have a few options. 1-Back out of the deal and start looking for a new deal. 2- Change the closing date. 3- Or make a creative counter offer. Maybe like $ off the price for every 30days the closing is delayed or some other creative idea.

Let me know because this is my first purchase so I dont have experience to fall back on.

Thanks!

@Gre Clifton you got the right answers from @Doug Utberg, @Tony Kim, and @Ali Boone - never pull the trigger on a deal just because you're afraid of missing out, and never make a move just because you feel like you need to be 'doing' something with your capital at any given moment. 

I agree, the AC issue would be a deal breaker for me. I may be biased toward full-service turnkey, but I agree, real turnkey companies would never leave an old unit like that in a property, that's not turnkey, that's pushing risk and expenses onto the buyer. Plus, the fact that they then 'fixed' it but didn't mention this change until you read the fine print is very troubling. Not only would I be concerned about what other issues they glossed over, but that kind of doublespeak just doesn't bode well for the transaction in general. I know they wouldn't be the PM on the property, so it's not like you'd need to deal with them long-term, but I would recommend always steering clear of folks that try to obfuscate like that at any point in an REI transaction.

New investors often feel antsy to deploy their capital as soon as they feel like they've got their feet on the ground, but not every deal is the right deal, and putting your money into a property where the seller is actively misinforming you is not going to be a good start to your portfolio. There will always be real estate, there will always be sellers and tenants and buyers.

I'd say pass and move onto the next. Hopefully, it's a seller that's a bit more transparent.

Best of luck!

Clayton

Originally posted by @Jason G.:

Originally posted by @Kiley N.:

@Jason Gines

What was the reason for the season? (no rhyme intended) I was under the impression that heloc funds are available for the DP.

I've read both. Wanted no issues. I did not want an issue with finding a property to purchase, entering into a PSA and then being told they wouldn't consider the funds in the HELOC.

When I am asked to provide proof of funds for down payment, the bank looks at my last two months bank statements. They do that specifically to make sure the down payment isn't coming from another loan. It doesn't necessarily hide it from the bank, because they will see your HELOC and know what balance is sitting on the account. They just want to see the cash is there. It would be pointless to go to the trouble of writing a loan, only to get to closing and find out the buyer doesn't have cash. You may not have to season, but it seems the safest thing to avoid questions/issues.