All Forum Posts by: Neil Aggarwal

I am not 100% sure, but I think you have to refinance.

If the 1st lienholder forecloses, all subsequent leins will be wiped out.  That is why the wrap has to pay the 1st no matter what. 

Seller financing is sometimes a good option if the terms are reasonable.  Many times, you can get a good deal.

I think HELOC is for a property you own directly as your primary residence.

There are lenders that will give you a line of credit against an investment property, it is just not called a HELOC.

Interest rates are quoted as an annual rate.  So, for example, if you borrow $100k at 14% interest, that means you will pay $14k per year in interest.  Divide that by 12 to get your monthly interest payment is $1166.67.  On an interest-only loan, the length of the loan does not matter for calculating the amount of the monthly payment.

Everyone I have heard of will want you to put your own skin in the game. Nobody is going to take your risk for theirs. I think friends and family may be the only option to get more money than the lenders are offering.

When I lived in PA and earned income in NJ, I got to pay taxes to both states, so the answer might be both.  It was in-state for where I resided most of the year and out-of-state for the other one.

I think a wrap note works for this.  The wrap holder collects the payments from the borrower and disburses payments to the 1st lien holder.  If the borrower stops paying, the wrap holder must continue to pay the 1st lien holder and may foreclose on the borrower to take over the property.  As long as the wrap holder keeps the 1st lien holder current, the 1st cannot foreclose.

Look around and see if you can get a better deal elsewhere and pick the one that works best for you.

Since you are married, I assume most lenders will look at both of you.  I don't think you can buy it in only his name.