All Forum Posts by: Samuel Vogt

Has anyone ever worked with agents on a seller financing deal before?  How would that work if it is even possible? I've only thought of off-market scenarios where seller financing is an option. Is it even plausible if agents are involved?

My first reaction is that an agent(s) would not like this idea at all, as commissions would not be paid out, but rather than searching for an answer, I figured the BP community would be able to offer up some advice/real world situations on this relatively quickly.

@Account Closed said. Stay with the smaller guys. All of the new banks/credit unions that I am talking to are smaller sized portfolio lenders. My first two banks were big national lenders, and its a flat out no, so try not to waste your time there.

@Chrissie E Lewis I am in a similar situation right now. Based on conversations with everyone, it seems that a HELOC on a primary residence is the best way to go. You save on the closing costs, and fees, but still have access to your equity. In addition, the line of credit will always be available to you once you pay it down, which is nice to have in an emergency.

The only difference in my situation is that I am looking to get a HELOC against my investment property, instead of my primary residence. If anyone reading this thread has any advice, it is more than welcome.

@Chris Duvall the property was used for a non-profit, so I am not sure if that classifies it as an investment property and am unsure of how my accountant classified it.

There are a lot of moving parts, but you are right. I need a clearer picture. Finding a friend who knows a lender and buying him lunch is a good start.

I have only talked with one lender so far, since this was day 1, and I plan to talk to more, but one thing that I have heard time and time again from the BP community is that portfolio lenders are the best to deal with.

I know all of the things that you suggested (Cash on hand, debt to income ratio, appraisal value of home, equity available, etc.) and showed him everything today at the bank. 

@Chris Duvall great insight.. I need to check with my accountant to see how my taxes were filed, and then maybe get some insight from him as well. 

I was thinking that an FHA might be the best option moving forward, but I hear that they are cumbersome.

I am trying to weigh the potential upside of doing that second mortgage as a straight investment property. My thinking is that it builds report with this small portfolio lender so that they trust me long term.

I am still about 6-8 months out from having the capital to purchase, but was thinking about doing some things to help the lender build trust with me.

- Opening an account and making a sizable deposit every month as I accumulate capital 

-Opening a HELOC now with the lender, but not tapping it

- Refinancing some student debt with them as well

Thoughts on this strategy with the lender? Do you think these things will make a difference?

I purchased my first home in 2014. It was listed as my primary residence, but has been an investment property for the last 2 years since I had moved in with a friend.  At this moment I am looking to purchase my next property, and trying to be strategic about financing.

I met with a small portfolio lender today to get some numbers and see what financing might look like.

My original strategy was to do a cash out refi and roll my equity into the next property, hopefully putting 5% down and having my next property be my primary residence and house hack (Duplex/Triplex).

But the mortgage officer/branch manager, said that my next mortgage wouldn't qualify as my primary residence, and that I would need to do an investment/commercial mortgage (I couldn't remember his exact terminology), unless the first one was paid off (which sounds crazy to me).

He suggested that I use cash for a downpayment on my second mortgage (which would have to be 20-25% since its an investment property), and do a HELOC on my first mortgage, for repairs or if I needed a little to cover the downpayment.

I am sure I can go that route, but I wanted to get the BP community's thoughts and advice if there is a possible way to get this second mortgage as my primary residence. Or should I just bite the bullet and do the second mortgage as an investment property?

Thanks in advance!