All Forum Posts by: Peter M.

@Luis Arellano I dont think it is a bad idea to have a LOC as long as you use it responsibly. There is a question when you apply for a loan that says, "is any of the down payment borrowed" so you either have to discuss that strategy with the lender or use actual cash you have for the DP then replenish as needed from the LOC. You dont want to commit fraud so just be careful.

@Hoang Bui This post doesnt make much sense. With the ban you cant evict them unless they leave willingly. Then you have to decide if you will go after them in court for the rent they owe. After the ban ends you could evict them but nobody knows how the rules will change after this. They still owe you the rent but you'll probably never get it. For now just document all interaction you have with them, try to work with them on a payment plan so that when you are in eviction court you can prove your were understanding.

@Robert Hernandez Depends on the loan servicer and insurance company. Sometimes if you contact the servicer and let them know they can transfer the down payment from your escrow fund. If not, you will pay out of pocket to the new insurance company, tell your loan servicer and they will make the adjustment. The servicer will have limits for how much can be kept in escrow so if there is an overage they will send you a check. They will also recalculate escrow every year based on taxes and insurance which is why your payment will change. Or you can pay the deficit out of pocket and your payment will stay the same.

@Katharine Gentsch If you are right on the valuation and rehab numbers then you probably shouldnt pay more than 140k. Hard to estimate without more details. Also depends on your exit strategy. As for loans you could do a commercial construction loan that will give you repair money but you'll have to put down 25-30% of the appraised value. Could also do a hard money loan and would need about the same amount down.

@Joseph Duffy You will have to pay closing costs twice if you do the cash method so the deal you get should be better than what it costs you to refinance. Also, if you want a "conventional" mortgage you'll have to do it in your own name which means taking it out of the LLC then put it back after you close. Not a big deal but more paperwork. If you get a commercial loan that let's you keep it in the LLC it will be worse terms than a Fannie/Freddie and you'll still have to sign a personal guarantee anyway.

@Samantha P. No. Unnecessary financial and regulatory burden. Your homestead already has certain protections and insurance covers the rest. You could do it yourself on the cheap but if you make a mistake you risk voiding any liability protection. A lawyer would probably recommend a trust if you really wanted to push the matter. They'll take your money.

@Vilena G. Flip would most likely be preferable in this case because there are fewer people looking to rent something in that price range. But there are other options. Corporate rental may work. If it's near SMU or TCU there might be an option for high end college rental but that strategy is a little riskier now with Covid-19. Just be careful falling in love with any investment property.

@Michael Volek Veritex Community Bank

@Mark Yesa Due to Covid 19 I think you are kind of stuck right now unless they voluntarily leave. You could try working a deal with them to move out but it might not work. Plus you have to take I to account the existing leases. Honestly it sounds like you may have needed some more due diligence before you bought this place.

@Ken Wang @Andrew Postell is a big contributor on here and does Fannie/Freddie loans. As for commercial try Veritex or Bank Corp South. Send me a DM and I can give you contacts at both.