All Forum Posts by: Richard Anderson

Hi @Louise A. when you were using "traditional" 30 yr fixed loans was there a specific institution or loan officer you were working with? My wife and I are trying to find a REI friendly lender in Indy. We are still in the single and small multi-family market. Any referrals are appreciated!

Thank you,

Rich

@Matt Burr you also need to be aware when you start researching companies who handle Solo 401(k)s that they may present a "self employed" 401(k). I had the experience recently. The brokerage one is also self-directed but works more like a traditional 401(k) in that the investments are in equities and such. A true Solo 401(k) lets you invest in multiple categories such as precious minerals, metals, and real estate.

Hi @Matt Burr, I think what you might be looking for is a Solo 401(K). If you search for that you will find a decent amount of information here on BP. Also, @Amanda Han covers Solo 401(k)s in her book on tax strategies for investors. It is a very good read.

The reason it raises a red flag when you say "Real Estate Investor" is because FinCEN released a geographical AML alert due to foreign nationals using real estate to launder money through investing. Various occupations increase high-risk ratings for laundering. Those which potentially have access to large sums of cash, or foreign investors, generate more interest from various governmental agencies. You may try another bank, but do not be surprised if you get the same result.

@Christian Bors and @Russell Brazil as I re-read your answers, would you mind sharing your opinion on doing the reverse? What if we were to withdraw the HELOC application, and submit an application for mortgage pre-approval. Then once the mortgage is approved (assuming it will be), we then go through the HELOC application process again.

Thoughts?

Thanks a ton!

Thank you @Christian Bors and @Russell Brazil!

Hi @Ebony Bolton , with my limited experience, I am going to say I bet it depends on the situation. I currently work for a mortgage lender and see conventional mortgages for less than $75k. We are based in the mid-west, where in some areas it is not difficult to find properties that low. There is a chance the interest rate may be a little higher so the bank can recover more profit on the low value of the loan.

I will also say, on what I hear on podcasts about NYC, where are you seeing duplexes for under $75k? That maybe more-so the challenge. The bank may not feel comfortable investing in the area you are looking.  

(disclaimer - this post is my opinion and does not represent the bank I am employed by.)

Hi,

My wife and I are putting together funding to start investing. We have been approved for a HELOC. The appraisal for our house came in quite a bit lower than we were expecting. Therefore we will need to secure traditional mortgages rather than purchasing outright. My question is does anyone know if accepting the HELOC, but not accessing it yet, will affect our credit scores and make it more challenging to qualify for traditional mortgages.

Qualifiers:

1. Already have mortgage on our primary residence

2. Have a considerable amount of student debt

3. Have a car loan but no other consumer debt.

Thank you!

Looking forward to seeing everyone again!

@Eric H. Congratulations! And thank you for sharing the knowledge you gained. Would you be willing to share your numbers for the project?