All Forum Posts by: Forrest Hayashi
Forrest Hayashi has started 10 posts and replied 43 times.
Post: which Real estate Market is hot ?
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- Posts 45
- Votes 11
Originally posted by @Nick C.:
Which real estate market is not hot?
Personal experience. Manhattan, New York City.
Largely affected by COVID as many have moved out of the city to outer boroughs or the burbs.
Would imagine this is the same case for Urban areas that are mature and overly-built. ies,. SF, LA,
Post: I am facing SO many hurdles during the refinance process!
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- Votes 11
Originally posted by @Andrew Postell:
@Jobee Vincent Buenaventura well, if most lenders are taking 60 days to write a cash out loan then you would only need 2 more months to start the refinance. I might not suggest taking a higher rate for 30 years if you can just want 2 more months to get the lower FHA rate. Was trying to explore other options here but the FHA route seems to be the best route to me given what was provided here.
Spitting out knowledge as you go, Andrew! Wow that is a very good point on the 60 days!
Post: How To: Cash out 1-4 unit Property
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- Votes 11
Originally posted by @Andrew Postell:
@Forrest Hayashi @Josh Norell is correct in that Fannie/Freddie do not REQUIRE that lien to be filed at closing....but we have seen a lot of lenders having issues with that since COVID hit. So we have been filing it at closing ever since to make sure that most lenders could help us with this strategy. You could find a lender that is ok with filing the lien after closing, but we'd have to know what lender to use...maybe Josh knows someone that will lend in your area that can help with it? But I'm advising everyone to file at closing to help keep as many lenders open to it as possible. Hope that makes sense.
@Andrew Postel @Josh Norell
Thanks both! My property is located in Philly.
Does filling a lien automatically puts the deed under the LLC? or i have to hire a title company to do it? Is it necessary to have the deed under the LLC? Would like to avoid title companies since they usually cost a lot (ies,. ~$4k+ in Philly just to close).
Post: Section8 metro Housing in Boston accuse me discrimination
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- Votes 11
Originally posted by @Zhenwei Chu:
Thanks all for the replies. Another issue is the inspection was performed on 5/20. I did not get the report until today 6/4. I cannot wait forever and keep the unit vacant, so rent the unit to a different tenant on 6/1. Now the problem is not only the failed issues should be fixed, but also the unit must be rented to this section 8 tenant. Do I have to evict the current tenant? If the inspector hold report for one year, I have to keep the unit vacant for one year?
As I said I worked with Metro Housing in Arlington and Lowell, and have no issue with them.
One word of advice. You need to be patient in real estate, and especially dealing with the city.
One of my properties is vacant for almost half a year now due to permit approval delays from the city. The fact that you already rented to a different tenant when there is a violation notice against you and have a signed contract with the S8 tenant? you're playing with fire here. Right now, i would suggest make those changes as soon as possible so that you're up to code but you might need some legal consultation if the section 8 tenants decides to take you to court.
Post: How To: Cash out 1-4 unit Property
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- Posts 45
- Votes 11
Originally posted by @Josh Norell:
Originally posted by @Forrest Hayashi:
Thanks Andrew! appreciate you sharing the wisdoms!
Looks like I am outta luck using this method for now as I have already purchased the property directly with cash but I'll be sure to use this method in my next rehab project!
Lenn, not true. You could file the lien at any time after the purchase. Like you mentioned, you can after the initial purchase form an LLC, and file the note and deed of trust(depending on your state). It doesn't have to be filed at the time of purchase. You can file it yourself if you're inclined.
Thanks Josh,
However, do i still need to transfer any cash from my LLC bank account to my personal bank account to insinuate that i borrowed the money from the LLC? My funds are currently locked up in various investments so not able to make those transfers. If just filling the lien and the deed on the property then i wonder if my lender will ask for audit trails.
Post: How To: Cash out 1-4 unit Property
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- Posts 45
- Votes 11
Originally posted by @David M.:
if you are going the LLC route and you purchased the property in cash, more like deed the property to your LLC from yourself, and get the commercial loan to cash out (thus the loan is under the LLC's name). Now the funds are in your LLC's bank account. Now, purchase more properties into your LLC from the bank account which is really what you should. If you want to move funds to your personal bank account, just transfer the funds and mark them in your ledger as an "owner's draw."
A cash-out refinance is not considered income.
Thanks David for the info! love the take on "owner's draw"! make sense :)
Post: How To: Cash out 1-4 unit Property
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- Posts 45
- Votes 11
Thanks Andrew! appreciate you sharing the wisdoms!
Looks like I am outta luck using this method for now as I have already purchased the property directly with cash but I'll be sure to use this method in my next rehab project!
Post: How To: Cash out 1-4 unit Property
- Investor
- Posts 45
- Votes 11
Originally posted by @Andrew Postell:
Hi Andrew, thank you for the awesome information and reaching out in anther thread!
I already purchased my property all-cash and put in additional money into the rehab. Just want to confirm. So using this method, i will need to set up a LLC, open a bank account under the LLC's name, file a lien/mortgage on the property from LLC to me, no money transfer is needed (money is all spent haha), refinance with a lender, lender wires the money to my LLC's bank account, create a personal loan note to move the money from the LLC bank account to my personal bank account, rinse & repeat?
Additional Questions:
2) Would that be count as revenue for my LLC to receive such a large amount of money when it did not have it in the first place?
3) Do i ever need a title company in filing the lien at city clerk office?
4) Would the deed in this be withheld by my LLC (in technical sense)?
Thanks again!
Post: How To: Cash out 1-4 unit Property
- Investor
- Posts 45
- Votes 11
Originally posted by @Steven Goldman:
Wow, we have numerous lenders that will refinance properties which have been rehabbed without a one year seasoning requirement. If you are purchasing the property in a distressed condition the issue of seasoning should not be an impediment to a cash out, or bridge to permanent transaction.
The lenders we use have about a 30 to 45 calendar day process. The costs might range from 1to 2k. plus our fee. Unless you have really poor credit funding is much easier these days than it used to be. Lenders will base your permanent loan on debt service coverage and many will not look at your DTI and other personal finances except to collect the information for compliance purposes. We place vacation rentals and many other properties which have been recently renovated and purchased at distressed prices. It is harder to find a good deal, than to find the money to do it!
Hi Steven,
Are these lenders that you're spoke of, able to provide conventional 30 year fixed rate loans?
Thanks!
Post: Which lender allows cash out under 12 months
- Investor
- Posts 45
- Votes 11
@Andrew Postell
Thanks Andrew, I see that you are referring to the LLC route.
Do I need to set up a bank account and tax ID for the LLC for this to work? I just recent set up a LLC and didn't do much with it so no bank account nor do I think I received a Tax ID yet. If a bank account is needed, do I need to deposit any require funds for this to work?
If signing a lien using an LLC, does that mean my deed would be under the LLC as well? As currently it's under my name.
Sorry for the many questions! Thank you!