All Forum Posts by: Manuel Savorelli

Thanks guys, appreciate the answers.   To clarify a bit, yes, it would be private lending and not hard money.   Also, I'm planning on adding $0 value to it,  not rehabbing, not flipping, and rents are currently at market price so not raising rents either.

Regarding getting the private loan, couldn't I have the title company record it to the closing and register the mortgage and lien? 

Finally, my concern is how I would repay without adding value.   I guess I can't cashout-refi,  as that would be based on my equity, which is only 20k, (20%).  Sam mentioned saving 5k and bringing it to conventional lender together with note... would that be a cash-in refi?

Also, would a term&rate refi settle the original private money loan? 

Thanks for the hand holding. 

Thanks MJ, so if I understand correctly,  when it's time for refinancing, the new lender will pay off the whole (100%) amount due to original private money lender?  

Thanks

Getting ready to purchase first MFR property with private money and I'd like guidance on the exit strategy.

A lot of the material posted deals with rehabs and cashout-refi of x% of ARV. My question(s) is for buy and hold.

For the sake of using round numbers, let's say the property costs $100k and I put down 20% from personal cash, and raise 80k from PML at 8% interest, for 1 year.

What are my options to refinance loan before note comes due? I'm confused because we aren't dealing with ARV so that eliminates the spread that you would pay your principal and interest.

Also,  would bank/credit union know that I received private money to fund original deal? 

Thanks in advance

When property gets sold, would you take over the PM?

@Kenneth Dai, who have you been using? 

can anyone recommend a good RE attorney and tax preparer or CPA in South Jersey? 

Thanks guys,  as far as I understand, a cashout-refi is basically a mortgage where you take out more cash than equity in property, usually up to 75-80% of home value, not equity in home.  So in my case, fully paid property, I should be able to reappraise and get up to 80% of value.

Alternately, get a HEL for fixed (lower interest rate) but get stuck with closing costs, also for roughly 80% of value. 

Finally, a HELOC, no closing costs but higher and variable rate. A revolving credit line whereby you pay only what you use.

So according to my strategy, since they would all be short term independent investments before pulling new equity out, I think a HELOC would likely be better, as there would be lower upfront costs, and would likely be repaid before interest rate grew. Clearly, I'd have to keep an eye on the present rate before using HELOC as HEL may be cheaper.

Thoughts?  

Out of state investor looking to build portfolio with TK properties.   

If you're a TK provider with occupied and professionally managed properties please reach out.   I'd love to hear from you. 

Is this property currently professionally managed? 

Thanks for replying Anthony. So what tool have you found most successful in your strategy? Cashout-refi, HELOC, HEL?