All Forum Posts by: Erin Deann Martin

In some markets, the sleeve would probably be an upsell rather than a distraction (see: Austin TX, Boulder, CO, etc.). 

In response to the comments about appearance/professionalism, I don't know. Some of the wealthiest people I know wear sweatpants/joggers on a daily basis. Stealth wealth and all that... (see also: the BP What Car Do You Drive thread).

Obviously a Realtor front-facing with clients and still developing a reputation probably needs to wear actual pants, but we're a long way from the days when a suit was necessary to project success. YMMV. 

Your unhealthy relationship is a separate issue from future goals as an RE investor - as many have already pointed out.

I'm surprised by the number of tired stereotypes referenced about what "all women" or "all men" are like/need/want, but that's an aside. 

It sounds like you're scapegoating most of your problems on your relationship/wife. You selectively mention some inflammatory flash-points, like your wife having insecurities or being envious of time you spend taking care of your ill mother - while failing to emphasize any of your own faults or contributions to the relationship. There are (at least) two sides in every dynamic, and I suspect there are at many details missing that could paint your actions in an equally unflattering light. You not did wake up disappointed in yourself at age 35 because you met and married your wife 11 months ago. This is not me picking on you - its a common mentality we all fall into when we're not careful. Believing we're saints and our partners are deeply flawed. Failing to acknowledge the baggage you brought in, etc. Feeling like the grass is always greener on the other side. Victimhood and blame are easy ways to opt out of self work. 

Your wife is not responsible for your success or happiness. I am not recommending you stay in a unhealthy relationship that you have all but left already. But I think your narrative needs reflection (offline). 

I second the recommendation to read Jocko's Extreme Ownership.

I second @Jordan Sutherland!  :) 

Well, color me seriously flattered @Andrew Postell and @Chris Mason!  I only know these things from having to learn them myself. I'm 100% the type of nerd investor who will parse the Texas Constitution if it means I can figure out how to move forward. I'm glad to hear my response was reasonably intelligent to two BP rockstars like you! 

Thanks @Bruce Ray!  I only know it from painful personal experience!  Ha!  But BP is so helpful when we all pool our knowledge  :) 

Hi @Bryan Hancock - I am NOT a broker or loan officer, but I did have to learn a lot about the peculiar TX Cash Out rules this past year.  If I'm following your logic correctly, your situation is:

• You have a previous HELOC on your primary
• You want to refinance to new rate/ term
• You'll be paying off your HELOC from some other source prior to the refi (NOT via a cash out during the refinance)

If that's the case, you shouldn't have any difficulty (other than perhaps some loan officers not being up to date on the regulations, or having other weird overlays).  The "once a cash out, always a cash out" rule was changed in 2018. Some lenders don't seem aware of this though, so I actually had to go and find the actual language in the TX code to prove it to an underwriting depart.  

Finally, when/if you do pay off the HELOC, some lenders may want to wait one year before giving you a new rate/ term (NON cash out) refinance. This is due to their misunderstanding of the law which states that a TX homeowner may not close on a HELOC or home equity product within 1 year of closing a previous home equity product. If you press them on this, and explain that paying off your HELOC is *not* the same as "closing" (re: opening) a "previous home equity product" they agree (with some double checking by their underwriting/ law dept).  

So assuming you are moving to a standard rate and term (NON cash out) loan, and have the HELOC paid off in advance of the refi, you would then have zero home equity products and would not have "closed" on a home equity product within the last year (assuming your HELOC is more than on year old).

A good realtor should be able to help you include this language in the purchase contract and also create a lease agreement with a prospective tenant that is contingent upon the sale going through.  We have done this in the past but were explicit in our purchase contract about our right to advertise the property for lease.  Likewise, we secured a tenant and signed a lease agreement contingent upon the property closing, but were actually able to add a clause to the sales contract for a lease-back option from the seller to the tenant for a few days when our closing was delayed. IE, our tenant moved in on the original agreed upon sale closing date/ leasing date, and we paid the seller a few hundred dollars for the couple of extra business days it took us to close (effectively giving them the rent for those days).  Again, I highly recommend being above board with both parties and have strong written agreements in place. 

Hi Spencer - I use a virtual PO Box/address in one market I invest in (iPostal).  I have been using it about 6 months and haven't had any issues with it. I've received mail (scanned), received a check (mobile deposit), etc. The one I use is cost effective but a little less slick/modern than some others out there. In the case of iPostal, it has a low monthly cost, but a fee for each action (fee to scan, fee to shred, fee to deposit, etc) so I think before you sign up for any particular service, consider how much mail you would be receiving there and if it makes sense to use a virtual box that has more of these features included in the monthly price.  I knew I wouldn't be receiving much since most of our business is digitized (e-bills, etc) but occasionally I get a vendor/service that wants a good ol' fashioned "address".  No complaints here - I'll continue using it in 2020. 

@Nicholas Aiola - your generous contribution of time and knowledge is invaluable to the community!

I PM'd you what I hope is a straightforward question about form/s to file (Sch E, C or 8825) for RE Pro + QBI + LLC management in community property state.

Yes - this issue is often misunderstood. There is an obscure part of the TX law that states that TX homeowners can't have two types of home equity loans at the same time. What some don't realize is that a previous cash-out refinance on a home often changes their loan type to a Texas Sec. 50(a)(6) loan - or"A6" loan - making it impossible to get a HELOC while the A6 mortgage is in place. The law also used to state that once a homeowner had an A6 mortgage, any future refinances would also need to be recorded as A6 loans, IE, "once an a A6, always an A6" (essentially making getting a HELOC impossible).

The TX legislature updated the law in 2018 to remove the "once an A6, always an A6" issue, but I've found some lenders aren't aware of the update and I've had to point them to the language in the actual law. This means that if you currently have a cash-out refi in place on a home, you'll need to refinance to a conventional rate-a-term/ non A6 loan BEFORE applying for a HELOC. There are no workarounds to this.

Finally, when/if you do, some lenders want to season the new refinance for one year before offering the HELOC. This is due to their misunderstanding of the law which states that a TX homeowner may not close on a HELOC or home equity product within 1 year of closing a previous home equity product. I found if you press them on this, and explain that closing on a non-A6 refinance loan is *not* the same as closing on a "previous home equity product" within one year, they usually agree (with some double checking by their underwriting/ law dept).  

So assuming you didn't do the previous cash-out refi (A6) loan within the past year, you can convert your A6 to a reg./rate-term refi, and then immediately proceed with the HELOC application. But be prepared to reference TX state law often to their underwriters. If your cash-out refinance is less than 1 year old, you'll have to wait until it hits the 12 month mark first.