All Forum Posts by: Robert Sprague
Robert Sprague has started 6 posts and replied 20 times.
Post: Analyzing a property using a HELOC
- New Jersey
- Posts 20
- Votes 2
@Tom Fidrych
Thanks for the feedback
Post: Analyzing a property using a HELOC
- New Jersey
- Posts 20
- Votes 2
@Jared Hottle
Hello I'm going to use my HELOC for down payment then mortgage the remainder. My concern is when analyzing the deal the interest rates on HELOC will go up so how do I get an accurate analysis on the deal.
Post: Analyzing a property using a HELOC
- New Jersey
- Posts 20
- Votes 2
@Nathan Gesner
Thank you
@Fulton Abraham Sanchez
Thanks
Post: Analyzing a property using a HELOC
- New Jersey
- Posts 20
- Votes 2
Hello starting to analyze first time investment properties using a HELOC for down payment. How do I calculate if I'm using the HELOC with a fluctuating interest rate? How much more cash flow should I have above HELOC? currently I was quoted 6.25 %. Thanks
Quote from @Greg Scott:
I'm not an attorney or CPA and am just sharing my experience. I cannot advise you on your personal situation.
I've done both of these.
1) You can get a loan in your name and quit claim the property into the LLC. Technically this violates the due on sale clause. While it is rare that they might call the loan, these provisions were put in place in the 1970s because it was a rising interest rate environment and banks got tired of people assuming older loans at low interest rates. Also, if you do not maintain corporate formalities, you may lose any protection your LLC provides from your property. According to Garrett Sutton, 50% of court cases that test LLCs, the LLC is thrown out because it wasn't managed well. If you later you decided you want to refinance into a lower rate loan, you are going to need to quit claim back into your name and then wait 6 months
2) Alternatively you can get an umbrella policy. This avoids many of the headaches of the LLC. It protects you from things that happen at your property and protects your property from things you do. Now, if you run over a group of highly-paid executives, that umbrella policy is probably not big enough to save you from all the lawsuits. Still, I slept pretty well at night with a $2M general liability on top of all my property liability.
Thanks for the advice but seems the commercial loan has a lot of hoops to jump through
Hello just looking for advice on purchasing my first Sfh rental investment property with regards to setting up an LLC or getting an umbrella policy and making sure the property is maintained. Seems llc triggers a commercial loan and is this really necessary. Thanks in advance
Post: Lehigh valley advice
- New Jersey
- Posts 20
- Votes 2
@David Garcia
Thanks for the advice.
Post: New to Bigger Pockets
- New Jersey
- Posts 20
- Votes 2
Just would like to say hello to the BP family as i am a rookie here.
Post: Lehigh valley advice
- New Jersey
- Posts 20
- Votes 2
@Kathleen Messing
Hi Kathleen my wife and I are new to the BP family as well as to world of real estate investing. We are focusing in on the Lehigh valley area ( Bethlehem, Easton and Allentown areas) and I saw your past post on the area. We are looking for a sfh to hold and would
Like something turn key first or minor cosmetic work as a start. We currently live in NJ. and any info on areas to look or avoid would be appreciated.
Thank you for your time
Bob S.