All Forum Posts by: Jeff Langley

Quote from @Chris Seveney:

@Jeff Langley

If it is just a lease option and you have not exercised the buy portion it will not trigger a due on sale. It’s a lease with an option to purchase

Also not sure why it needs to be recorded. Typically we do then as 2 docs - one is the option contract and the other is the lease.

I’ll be putting down 5% down. What ooptions would i have for recourse if the seller preaches it, if it’s not recorded other than wasting time in court? 

Pard my ignorance, i haven’t done a deal like this and just want to cover my as..

Hi all, 

I am purchasing a SFH with a lease option to buy and want it recorded with the county. The seller and I are concerned about the due on-sale clause. I know from everything I read that I shouldn't be worried, but how can I not on a 600k purchase? Any advice or tips would be great. Thanks

Same. 

Hi all, I’m finalizing a lease to buy deal where I bring a relatively small down payment and had the purchase price deducted 3% for my agent’s commission which I’ll be responsible for. Any tips or suggestions on how to pay the agent other than paying cash and going through the agency where they take large fees/taxes. Thanks!

Quote from @Michael Baum:

Ok @Jeff Langley, here is a short list of lenders that offer some kind of HELOC on investment properties -

• Wells Fargo
• Bank of America
• US Bank
• Flagstar
• PenFed Credit Union
• Alliant Credit Union
• Fifth Third Bank
• TD Bank

This is not an exhaustive list and the lending requirements are much stricter than on a primary home. 

• More than 25% equity accrued in the property
• A loan-to-value ratio that doesn’t exceed 75%
• A credit score of 720 or higher, in many cases
• A debt-to-income ratio of 43% or lower
• Cash reserves of at least six months

That is just the basics. Interest rates will be higher etc.

Thanks for the reply but when I’ve spoken to more than half of those banks on the list and been informed otherwise. I don’t think penfed has offered it for over 12 months, unless things have changed in the last month. I wasn’t trying to hijack this thread, I’ve just read too many people throwing out an expired list without a legitimate contact or success story.  

Quote from @Michael Baum:

Do you have a primary residence @Alain Martinez? If so a HELOC on it might be the best route.

There are lenders who will do a HELOC on an investment property. You have to search around.

I’d love to hear of some investment property HELOC lenders. Everyone mentions knowing of some until you call and ask…

Nice job on the potential brrrr. I think you have a few options. 
1- does the current loan have a prepayment penalty, as most DSCR do. Even without, the property might need 9-12 months of seasoning or revenue for you to get out of the loan, unless it qualifies as an LTR after the seasoning period.
2- I haven't found a lender that will do a HELOC on an investment property. I'll see people mention some, but everytime i make an inquiry they inform me they only do HELOCS for a primary

2- personal HELOC is probably the easiest route.

I currently pay mine between $2-3.5hr. 

Strictly my opinion here but seems overpriced for those returns. I never rely on 100% of airdna projections. I’d get the current bookings/revenue and break it down and project that. 

My concern is the coc is under 10% and that’s with a favorable interest rate. Worst case you have to exit the ballon and rates are still high, you’d take a huge cut. 

Quote from @Jim Stutzman:

If you were looking to invest in a STR in Hochatown/BB, which location would you choose? Would you want to be in Hochatown or out of town? What land features would most interest you? Would a creek side cabin be ideal? Secluded or on a main road? We are working on a deal there and have found a couple that the numbers work on. Our top pick is about 5 minutes from the saloon and is semi secluded and has a flowing creek 75' from the back of the house. Just not sure how important a feature like that is to renters.

 Anything that you can do to set yourself apart from others, especially if the location has a creek. Rentals in BB all seem the same to me.