All Forum Posts by: John K.

Hi Benjamin, 

I typically recommend owning your own primary residence before investing. The benefits on the lending side are huge--lower rates and much lower down payment requirements. Your family might benefit from buying a 2-4 unit property with 5% down using a conventional loan. Feel free to reach out if you have any questions!

John

Welcome Rob! Feel free to use me as a resource for any loan-related questions. 

John

Hi Brandy, 

I'm personally a big believer in (almost) never selling a property that you've owned for years. There are big benefits in holding a property rather than buying a new one such as that the property taxes will be lower due to not being reassessed as they are on sale. It's very tough to find any cashflowing property right now with mortgage rates, so I'm not sure any new property would really provide more cashflow. 

John  

Welcome Priscilla! Feel free to use me as a resource for any loan-related questions. 

John

Welcome Reagan! Feel free to use me as a resource for any loan related questions. 

John

In the past, getting a cash-out refinance or a home equity loan was the traditional way of getting equity out of your home. However, since most homeowners don't want to give up their low rate with a cash-out and don't want to fix a high rate with a home equity loan, HELOCs are becoming more popular than ever. Here's why it's the best option to take cash out of a property right now:

- Available on Owner Occupied or Investment Property

- Won't affect your 1st mortgage

- LTV up to 90%

- DTI up to 50%

- Interest only for the first 10 years, and only pay when you have money drawn out

- Variable rate, so your rate will automatically adjust down if rates drop in the future

- Very low closing costs, often an appraisal is not needed

- Can borrow from and pay it back as many times as needed during draw period

- The cash you take out can be used for anything--renovations or a down payment on an investment property, consolidating credit card debt at a lower rate, buying a new car etc.

Feel free to call or email me anytime to calculate how much you could take out!

Hi Austin,

It all just depends on what the seller is willing to offer for rate/terms, and how this compares to traditional financing options. Keep in mind that any traditional lender will have rules and limits for how much the seller can finance in addition to their own loan, so unfortunately it's not possible to combine the two for 100% financing or anything close.

John

Welcome Derrick! It sounds like you have great experience to be able to help out your clients. I'd be happy to be a resource for any lending questions you or your clients may have--I specialize in investor loans and work with over 100 lenders that offer almost any program imaginable, including Conventional/FHA/VA/USDA, DSCR, Airbnb/Short term rental loans, HELOCs/HELOANs, Interest-only loans, and many more unique scenarios. Feel free to reach out anytime!

John     

Hi John,

The value of an extra bedroom is generally the largest among those three items, and it is much less complicated to do than adding a bathroom which includes all the plumbing. A bathroom can also add value if there is currently only one. A pool requires the largest capital investment of the three, and in most cases adds very little if any additional value. It really depends on the area and type of property, as in many neighborhoods people would prefer a bigger yard over a pool that they have to pay maintenance for. 

John

Hi Josselyn,

That's a tough situation to be in, but I admire your commitment to rectify the situation not just for yourself but for your tenants as well. Perhaps if you get a copy of the electric bill from your tenant as well as historical electric bills to show the baseline, the HOA may be willing to compensate them as well. I'm sure they will appreciate you making the effort to do that for them!

John