All Forum Posts by: Jason Wray

 Indiana - Hot spot right now.

Thats a Big No... You will not find a bank that is going to offer traditional financing and be okay in Second lien position. You might want to talk to a hard money lender HML or private financing. You have two parties involved in the "Risk" process and the owner sits in the primary 1st lien position. So naturally if something happens the seller gets the property back. The bank is out it's money unless the seller can satisfy the lien on a deed in leu or a sale of the property.

Second lien holders alwasy get stuck with either nothing or the left overs!

Don't be afaraid to pull cash out of your home to keep the ball moving. Live by the expression "We Marry our Home and Date the Rate". A Cash out refinance can offer a stronger position over a HELOC but sometimes both provide a benefit. Talk about your options do not fall victim to the 20% down and paying multiple points. There are New programs that taylor to investors out there other then just the typical put all your money down.

I say this because it can be tough to sit on the side line and watch all the deals go by afraid to touch a rate of 2.6%.  Don't let that hold you victim to waiting unless you already have the 15% down to use on the next investment.  Second homes are only 10% down so it all depends on the next move you make.

I have worked with @Beau Matlock in Indiana and they have had some pretty impressive SFR and mulitfmaily options in the last few months. It's still hard to beleive how great of a deal you can get on a cash flowing property in places like Indiana. I would reach out to him and his team and start looking at some of the deals they have in their MLS inventory.

You can find him by searching here on BP.

Hopefully this helps you view options you may have not considered.

Flavia,

It does not have to be 100 Miles away it can be closer as long as it makes sense. It cannot be a Multifamily home as it must be a single family. Typically a vacation home/second home is in an amenity area by the beach, or by a lake, river, in the mountains, out of state etc. Second Homes are 10% down and do help you save money. You can also rent out a vacation home/second home typically 6 months out of the year or use it as a STR AIRBNB/VRBO.

There is a alot of confusion surrounding second/vacation homes that you must live in the home only and cannot rent.  That is false you can buy it use it then transition it into a rental because you have that right.  Its called a "Change in Life Circumstance" which means life and our decisions can and will change without notice.

If you are trying to buy a home calling it a second home in your immedite neighborhood it will not pass.  You can also buy an investment home with 15% down so make sure you shop around.

John,

If you have great credit and can show income either W2 or 1099 I always recommend avoiding a broker and going directly to a Banker or Lender. Choosing an FDIC Bank that covers Nationwide offers you a better option especially if you go with a Fullly Delegated Bank. Small local banks or credit unions have tougher guide lines and overlays.

Ben,

You can use a personal loan, HELOC, or refinance a property to take cash out if you own a primary. Either way its a great start to get into the REI world.

Jarret,

FHA & FHA 203K are the same and they do have a 12 month "Expectation" for 12 months for you to live in the home or one of the units. However if you could refinance the home after 6 months and transition the home into a conventional loan. You could then move out and treat it as a rental prior to the (12 months). When you refinance on the REO - real estate owned section you list the home being refinanced as primary but intended to be use as rental/second home.

You might hear that you cannot refinance the home and move out but you 100% absolutely and move out if you set it up "Correctly". This is where a seasoned Banker/Loan officer wold come into play to make sure the 1003/REO/application is done correctly.

Dawn,

There are more than a few programs for the Jumbo primary home as well as Second Home purchase with 10% and even Zero Down.  There are Portfolio programs and even a Medical Program if applicable where you can go up to $2MM if you or partner are in the Medical Field.

Claudine,

You can always buy an investment home with 15% Down and since you are in Clearwater, Florida there are some good deals just north of you in Holiday. There are also condos in Largo/Seminole for under $125K just be careful of the HOA fee's.

I am in Pinellas County as well and its tough around the beaches but inland offers a lof of deals.  Including South St.pete all the way down towards Eckerd College.