All Forum Posts by: Jason Smith

@Lisa Hall

Have you considered a hard money loan for the home then refinance it after purchase. It wouldn't be at the 3% rate but at least you would be able to close the deal.

Currently own a rental free and clear in the Fort Worth area and I would like to find a lender that offers a 30 year fixed cash out allowing 80% LTV.

Apparently this seems to be a unicorn and hard to find or at least hard for me to find.

Can anyone advise as to anyone that lends in Texas that can do this?

Looking at buying a used dump trailer for my rehab business. But I got to thinking about the tax implications. I know I can depreciate a new one with a sales receipt but with a used one what do you show as evidence of a cash purchase in order to depreciate it?

Would I be better from a tax stand point on just buying new?

Thanks in advance

@Remone Randolph

As long as your TREC 1-4 contract was filled out “on conditional to financing” you are covered. Just have the lender send you a letter stating they will not loan the amount you seek and give it to the escrow agent. They will release your escrow.

In the midst of doing taxes this year my CPA says she feels that I need to file as Self Employed  because of the amount of time I spend doing RE.  I only do this part time and have a full time earned income job.  I flipped 1 house last year and added 2 rentals.  I am not trying to pull one over on the gov but filing this way will cut my refund in 1/2 as opposed to filing as capital gains and not SE.

So what are your feelings as to the best thing to do here?  What is actually required vs what is best practice?  How should I proceed?

thanks in advance

@Gary Waddle My first advise is use the calculators under tools here on BiggerPockets it makes the numbers a lot more accurate and will provide you with the confidence you may be looking for. Also it prints off a great form to show potential lenders. At the end of the day the numbers don’t lie. If it’s profitable and is cash flowing what you want then jump on it. However as it’s already been said in this thread use caution with the class of property you buy. The lower class properties typically take more of your time. That doesn’t make it a bad deal. You just have to make sure it’s right for you, your goals, and what you want out of your business. I thrive on deals that aren’t easy and others pass over. Good luck

@Jeremy Keeler Awesome buddy. What lender did you use? I just did my first “line of credit” against an investment property. I’m exited about getting the full rent roll from that property when I haven’t accessed the LOC. I used First finical in willow park and they made the process super easy.

@Nicholas Gray We have all been there at some point. Questioning why we have pursued a career that we no longer love. I’m all for chasing your passion and feeding the RE machine in the process. With your background in engineering you may consider home inspection in addition to sales. I am an inspector in Tx and have friends in the field that regularly clear 6 figures a year just with Inspections. This will also give you the opportunity to build your network within the RE community

@Michael Mullins did you get your HELOC secured by your primary residence or an investment property? I keep being told that Texas does not allow HELOCs on investment property, but when I called Penfed they said they will do them here. Confusing! I just dont want to start the ball rolling only for underwriting to stop the process 5 weeks from now and then have to start over with a cash out loan. Thanks

@Peter M. Thanks for posting the vendor recommendation. What kind of loan or line of credit are you using with them?  I will have to give them a call.

Ive been researching this myself for the past few days for the same reason. What I have found thus far is that YES you can get a HELOC on you primary residence with no mortgage. However, HELOC's on investment property is not allowed under the Texas Constitution. You can seek out just a line of credit secured by the property and not a HELOC too.