All Forum Posts by: Jason T.

So I bought my new primary residence 2 months ago. I added several hundred square feet and would now like to tap the home equity. Is this something I can do right away, or do I need to wait until 6 months or 12 months? I've called a few conventional lenders and have been told that they can't use a new appraised value until more time has lapsed.

Is this the case for all normal lenders? I assume I can do a hard money loan without issue, but I'd like to avoid that if possible given how expensive they are.

I'm open to any loan product (HELOC, home equity loan, cash-out refi, etc).

Any advice would be appreciated!

So I bought my new primary residence 2 months ago. I added several hundred square feet and would now like to tap the home equity. Is this something I can do right away, or do I need to wait until 6 months or 12 months? I've called a few conventional lenders and have been told that they can't use a new appraised value until more time has lapsed.

Is this the case for all normal lenders?  I assume I can do a hard money loan without issue, but I'd like to avoid that if possible given how expensive they are. 

I'm open to any loan product (HELOC, home equity loan, cash-out refi, etc).

Any advice would be appreciated!

A couple thoughts... 

1) You're probably buying near the peak of a real estate cycle.  Be prepared to wait several years before exiting the deal.

2) Check the zoning and deed restrictions on both lots.  Oftentimes, lots can't be combined or subdivided.  And there are restrictions on what you can actually build (density, etc).

I don't have a problem investing for appreciation if you can handle the negative cash flow.  Just ask someone who bought negative cash flow property in LA or NYC 10 years ago.  

Good luck. 

I often hear things like:

" I hope to get to 100 doors by next year"

or

"I went from 7 doors to 50 in 12 months"

Don't get me wrong, those are great goals and accomplishments.  But doesn't it make more sense to view portfolio size in terms of value?  Does the number of doors even matter at all?

For example, someone can own 7 high-end single family homes as fully furnished executive rentals in major metros that command an strong premium above market rents.  And that portfolio could be worth $5mm. 

Or someone can own a class B, 25-unit building worth $3mm.   

Both are great properties.  Both are different strategies.  But who cares how many doors?

Can someone please help me understand what I'm missing?

Thanks, Kerry!

Having never done a commercial loan, I'm curious enough to give it a try. I assume the rates are higher but that's okay in the spirit of learning. 

For commercial, is it hard to get a loan if the entity has no financial history?  Do I basically cosign on the loan (as an individual) too?

Thanks in advance :)

Hello everyone. I'm trying to do my first BRRR deal. Bought the home 6 months ago, did the rehab, and it's now rented and cash flowing. Based on the ARV, I should be able get cash out at 75% LTV.

I spoke to my first lender and was told I need to quitclaim the home into my name, wait 6 months to season, then do the refi.

That sounds wrong to me.

Can I just keep it in my LLC and do the refi there?

Any other tips for a BRRR newbie?

Thanks.

Hi Kyle.  II have I have not yet made an offer. But I was curious how to structure the offer with regards to earnest money and due diligence periods.

Looking for some advice on how spec home offers are typically structured.  I'm in North Carolina and looking to buy a spec home that should be ready in about 4 months.   I have a few questions and hoping that some of the more experienced folks here on BP can offer some advice:

1) On a typical purchase, i'd normally have a 15 day due diligence period and then the Earnest Money Deposit becomes non-refundable.   But if the home isn't ready for a few months, how can I do an inspection and release all contingencies?  Does the DD period normally get extended?

2) Also, how do I make sure that the builder doesn't skimp out of quality and finishings once he gets an offer locked up?  I assume I can have him commit to some stuff (fixtures, appliances, etc), but there's no way I can identify everything (nor would I want to be spending time on checking every single thing).  Is this just a question of good faith and trust? 

3) Any other lessons learned or suggestions?

Thanks in advance!