All Forum Posts by: Josue Lopez

I purchased raw land and have been constructing a property in the surf capital of Puerto Rico for 2 years (1yr. Prep and 1 yr. Building) and funding everything 100 percent including all of my time, resources, and money. (Literally no help not even labor.)

This was a "I need a challenge and change" kind of moment...

Happy to say, The "main" house is built and approved permits have been granted.

Issue:

My funds are running low and I haven't had any income coming in for close to 2years.

My vision of a "detached multiple structure building" is at a stand still.

Before I tank I am exploring voids in the market to maybe start up a construction or remodeling business, and also considering networking with local investors to explore ways to try to gain capital in a pretty saturated real estate market.

The Goal:

Find a creative way to use the equity I have built to continue the venture, and keep developing, (but how with zero income last 2yrs)

Invest in the area by providing a service and get involved in the local real estate market.

Ultimately, to find a cash partner that I can build a strong relationship with, and keep developing properties for Sale, STR, LTR, etc...

FINAL THOUGHTS:

Although my approach at all of this went against my knowlege, I did it for me, this was a moment in life where I needed to prove that i could go beyond familiarity and comforts and still manage to succesfully learn, build, and stay interested. Crazy, I know, but future regrets and wonder were not an option for me.

The easy exit strategy here is to sell and double maybe triple my investment, check off the list, and go back to my comforts...but the beauty is I kind of want this now, I like the idea of expanding all that I've learned and turning it into something tangible.

On that note, BiggerPockets is a amazing community that has helped me so much in the all of the years that I've been investing, and I appreciate every single one of you that takes the time to help others and share their experiences and opinions you have all of my respect.

Josh

0 Votes

Quote from @Brenden Mitchum:

Hey @Josue Lopez, welcome to the BP Community!

Wow, all caps?? Guess you're pretty excited. I would be too if I had a triplex with some equity in it!

Your best bet here is to start working with a loan professional to plan out the best strategy for you. Hopefully, you already have someone. If not, ask around to friends and investors in your area.

As far as I know, HELOCs are reserved for primary residences so you would have to move back into the triplex first. Not sure if there are exceptions to this but, again, leverage your loan pro's knowledge!

Shouldn't be any issue getting that HELOC and pre-approval at the same time from the same lender. In fact, this would be the smart move since you'll get your credit pulled for each. Doing them together avoids a double hit to your score.

And that's about the extent of my knowledge on the subject but figured something was better than the nothing you've gotten so far. Hope it helps a bit! Reach out anytime if you have other questions or just want to chat.

Thank you for your response Brenden,

I was excited until I was met wirh the owner occupancy requirements to use my equity/funds.

I'm back to the drawing board but excited for the knowledge I'll gain from this challenge....there has to be a way!

1 Vote

Quote from @Andrew Garcia:

Hi @Josue Lopez, below are my answers.

1. You can do both simultaneously. A HELOC might not be your best option, however.

2. You can use a HELOC for a down payment but it will affect your debt-to-income ratio. HELOCs are lines of credit, not fully amortizing products so the terms vary based on your scenario.

3. You get better rates and terms on a primary residence.

4. You can get approved for both. You need to reach out to a qualified lender that can help you.

Hope this helps! Let me know if I can be of any assistance.

Thank you Andrew,

I thought I had it all planned out, until I was met with the owner occupied clause.

The property has plenty of equity and great rental history but it seems useless under these guidelines...

I guess removing a tenant and moving back in will make things easier or less riskier for the lenders

I've considered a dscr loan but they also are requiring 20% percent down so I'm back to square one. I guess im saving for another year or planning a move.

Thanks again for your response.

0 Votes

MY VOTE WOULD BE SHORT TERM RENTALS, SOMETHING LIKE SUB LEASING A RENTAL SPACE ON AIRBNB AND MAXIMIZING YOUR INCOME. A GREAT START WOULD BE SOMEWHERE IN YOUR AREA SO THAT YOU CAN MANAGE IT AND GAIN EXPERIENCE BEFORE VENTURING OUT AND EXPANDING TO OTHER AREAS...JUST A THOUGHT :)

3 Votes

BACKGROUND: I WANT TO PURCHASE A SECOND INVESTMENT HOME, I CURRENTLY DONT LIVE IN MY HOUSE I RENT IT OUT COMPLETELY (3UNITS), IVE BUILT UP ENOUGH EQUITY AND I WOULD LIKE TO USE IT.

QUESTIONS: DO I APPLY FOR A HELOC FIRST OR A PRE APPROVAL FOR A PROPERTY? CAN I DO SO SIMUTANEOUSLY?

CAN I USE A HELOC FOR A DOWN PAYMENT? IS THERE A TERM FOR THIS TYPE OF LOAN?

SHOULD I BE "LIVING" ON THIS PROPERTY TO BETTER MY CHANCES AT A HELOC? HOW DO I APPROACH IT?

REALISTICALLY I WOULD LIKE TO GET APPROVED FOR A MORTGAGE LOAN AND ALSO APPROVED FOR A HELOC ON MY CURRENT PROPERTY SO THAT I CAN ADD VALUE OR REPAIR THE "NEW" PROPERTY FOR QUICK TURNOVER/RENTAL AM I BEIGN IGNORANT OR IS THIS POSSIBLE??

THANKS!

1 Vote

All Forum Posts by: Josue Lopez

Josue Lopez has started 2 posts and replied 5 times.

Post: Advice required, Should I Pray or Prey, looking to broaden my thoughts.

Post: IS THERE A TERM?! HELOC, INVESTMENT PROPERTY, PRE APPROVAL

Post: IS THERE A TERM?! HELOC, INVESTMENT PROPERTY, PRE APPROVAL

Post: QOTW: If you had an average income, but don't want to househack..

Post: IS THERE A TERM?! HELOC, INVESTMENT PROPERTY, PRE APPROVAL