All Forum Posts by: Steven Young

December 6th at 11:30!

A new group for local investors and real estate professionals that would like to network and hear other's experiences in the world of Real Estate Investing. Feel free to bring a lunch if you would like, there is also a small cafe on site if you would like to grab something.

We will meet in the Rotary Conference Room, the first room on the right as you enter the library. Feel free to share this event with others!

Hey Arkansas BP'ers!

I live in Rogers, AR and am planning to open a HELOC soon! Does anyone have recommendations for local banks that have competitive HELOC rates or terms? (Low Intro APR, No/Low closing costs, etc). One thing that I am looking for is that the lender can do at least 90% LTV if not higher. I found one bank that can do that so far (Signature Bank). Thanks in advance!

@Andrew Postell You clearly know your stuff in this realm! I am trying to understand when a HELOC is more advantageous than a cash-out refi and vice-versa.

So I bought this duplex a 3 months ago and am currently living in one unit (house hacking) while doing some renovations. My plan is to live in it for a full year and then buying another multi-family to house hack and repeating the process from there. I bought the property for 95k and put down 5%, so my current balance is 90k. The property appraised for 120k during the loan process, and with some renovations and increase in rents I think it would appraise for around 130k. I was locked in at 5.125% interest rate but interest rates have already dropped significantly in the past few months. My thinking is that I could wait a little longer and finish repairs, refinance at the lower rate and in the meantime pull out around 30K (a local lender told me that because it is my primary residence I can refi up to 95% ltv which is where I started 3 months ago anyways). Between the lower interest rate and the fact that I want to use the proceeds as a down payment on my next property, I was thinking that the cash-out made more sense. Also, it sounds like a good opportunity since I can refi up to 95% whereas it seems from what I've read that if it was not my primary residence I could only pull out up 50 85% or so. I want to make sure I'm seeing the whole picture before moving forward though, what would be some advantages of the HELOC?

@Daniel Kern

That's something I'll have to keep in mind, I didn't realize that if it's in an LLC you can't get a HELOC, but that does make sense. I'll tell you a little more to see if you still suggest the HELOC in my situation. So I bought this duplex a 3 months ago and am currently living in one unit (house hacking) while doing some renovations. I see it as more of an investment property than a primary residence because I will be moving out next year into another small multi-family and repeating the process. It's only my primary residence because I wanted to be able to get started with very little cash upfront. I bought the property for 95k and put down 5%, so my current balance is 90k. The property appraised for 120k during the loan process, and with some renovations and increase in rents I think it would appraise for around 130k. I was locked in at 5.125% interest rate but interest rates have already dropped significantly in the past few months. My thinking is that I could wait a little longer and finish repairs, refinance at the lower rate and in the meantime pull out around 30K (a local lender told me that because it is my primary residence I can refi up to 95% ltv which is where I started 3 months ago anyways). Between the lower interest rate and the fact that I want to use the proceeds as a down payment on my next property, I was thinking that the cash-out made more sense. I want to make sure I'm seeing the whole picture before moving forward though, what would be some advantages of the HELOC?

@Daniel Kern Did you ever find an answer? I am in a similar situation, I have some equity in my primary residence that I want to pull out to buy a rental property but am having trouble deciding between Cash-out vs HELOC.

Awesome Brian, thanks for the contact!

At the moment I am trying to set up a seller-finance deal, so I am looking for someone that can help with the promissory note and deed of trust setup. Since I've never done a seller-finance deal I am hoping that the attorney I work with can help me better understand the legal/contractual arrangement and walk me through it a little. I feel like I understand the general concept based off what I've read and studied, but I want to make sure I don't miss anything.

Hey everyone, I'm a small-time investor in Bentonville, Arkansas, but I am making plans for my next deal on a small multi-family property. Does anyone have recommendations for an attorney that specializes in or has experience with real estate law? I would prefer someone that works in the Bentonville, Rogers, Fayetteville or surrounding areas that I could meet with in person.

Thanks!

Hey Christian, I'm from Washington State and my wife is from California, but we moved to NWA about a year ago and we have absolutely loved it. We joke with friends that it's like a hidden gem because most people would never think to move to Arkansas (when we were telling friends and family we were moving out here we got some funny looks) but it's a great place to live. Like Nolan said, it can take some creativity to find good deals, but I believe there are a lot of them out here to be found if you do your work. We closed on a duplex that we are house-hacking a few months back and are looking for our next investment now. Another great thing about this area is that the cost of living is so much lower than most areas, so if you make a decent income you can have a very comfortable quality of life out here.