All Forum Posts by: Steven Goldman

No disrespect meant for Dayton. I agree with Michael and Austin. These are emerging excellent markets. The yare especially attractive to less seasoned investors because of the low entry bar. Good luck.

I am a former practicing real estate attorney. This question comes up from time to time in our lending business. The members of the LLC can own their shares with right of survivorship. That language needs to be in the operating agreement. The tax implications are above my pay grade. You would have to seek advice from an accountant , tax attorney or estate planner to determine if it makes any sense in your situation. Good luck.

Hi Burt your kidding right? This site has hundreds of them advertising. Brokers do not work for one lender. If they are any good they will have actual personal connections with bankers, funding company originators and private money. One size does not fit all in the investor space. Some companies are good at mixed use or commercial. Some companies sweet spot is 1-4 unit residential. Some lenders will accept lower credit scores some will not. Some companies primarily focus on rehab. lending. All of the brokers and originators are compensated either entirely or partially by commissions. This is one reason I prefer to work with a broker who is going to fight hard to get me the best deal. A company originator only has access to one source. It may not be the best one.

Your broker should match your deal to the appropriate lender. The broker should know the guidelines and fees that the lenders charges. Unfortunately, over the last 12-24 months the investor broker space has been flooded with new originators many of whom are simply following the money. Most States do not require licensing on non owner occupied properties. So it is hard to separate the wheat from the chaff. You should ask any lender or broker how long they have been in business? They should be able to give you referrals that you can contact. Of course, search the web to see what people are saying about them. Real estate is a great journey. The more you learn and the better your preparation the more success you will have. Good luck.

If you are financing to acquire your STR. The STR lenders' base their decision making on the Airdna statistics. So Airdna statistics are valuable even if not 100 percent accurate. They set the maximum income that will be considered by a lender when underwriting the STR loan. Of course, if you are buying an existing STR its history, is the best indicator of its performance. Good luck.

Ohio, Canton,Akron...............Pennsylvania, Pittsburgh and northern tier from Scranton, Wilkes Barre to Erie. Their are so many it is impossible to list them all. If you stay out of the major urban centers and concentrate on the further suburbs you will find all sorts of deals. The question is will the rents justify the expense? You need to consult the local real estate professionals or investment clubs to determine if the rent will create sufficient R.O.I.. Good luck.

Mike, here is a good article about investment property HELOCS. 

What it Takes to Access an Investment Property HELOC

A borrower requesting an investment property HELOC by a lender needs to get their financial ducks in a row. Due to the risks involved, lenders are naturally cautious when considering a rental property line of credit. There is a lot at stake from a lender's perspective, so expect to be prepared in all ways possible. For starters, a borrower must have excellent credit scores, ample cash reserves, and have owned the investment property for at least one year.

The lender will likely want proof of solid tenants that make timely and consistent rent payments, and proof of a lease agreement. Not only will the current investment property scenario be carefully examined, but the borrower’s entire history as a real estate investor will be scrutinized before a lender grants a rental property line of credit.

The fact that an investment property HELOC allows repeated access to credit, makes it a stellar option for an investor intent on returning the credit availability to its original set point. To have such a flexible and open line of credit makes the investment property HELOC such a desirable financial tool for a rental property investor.

Benefits and Risks of a Rental Property HELOC

Why are lenders so reluctant to approve a HELOC for an investment property? Say the borrower loses his tenants at the same time he finds himself unemployed – a not altogether unrealistic scenario by any means. Life happens, and for a property investor that leaned on their home to grow their portfolio, things can get serious fast.

For a borrower's first priority in such a situation will be to protect his own home, not their investment properties. If the borrower struggles long enough and ends up losing their home in foreclosure, assets sold to pay off debts will not necessarily leave enough money to settle the second or third loan. That means the HELOC may very well never be repaid, leaving the lender empty handed.

As a result, lenders build in protections equal to the risks. For one, an investment property HELOC comes with a higher interest rate than one written for a primary residence.

A HELOC on a primary residence could have a loan to value (LTV) ratio of 90%. Not so for a rental property, with stricter loan terms meaning the LTV may only reach from 75% to 80%. And one last big difference with an investment property HELOC is that the lender reserves the right to ask for two home appraisals, whereas one will suffice for a homeowner HELOC. Again, all these things are in place to protect the lender, due to the raised risks involved in granting a rental property HELOC.

While borrowers applying for a HELOC on their primary home can often get approved with FICO scores at or above 660, those looking for a HELOC drawn on an investment property should shoot for a score north of 700. Check with figure to discuss the credit score needed to get approved for a HELOC on an investment property.

A huge plus in using an investment property HELOC is in the way an investor can draw the down payment for a desired property, and pay it back, leaving the available credit still intact for later use. As long as you continue to pay back the borrowed down payment, a replenished account means you can reuse the open credit for future down payments – over and over and over again. Needless to say, this leaves an incredible potential to swiftly grow your portfolio.

 Good luck.

Mike I got it. A local bank or a credit union would be the place to go. I would check into it before I made to many plans. It is still a investment property regardless of how you take title.

Hi Michael, I would cash out refinance your rental property use some of the money to pay off your HELOC and use your HELOC to buy another rental property. Lines of credit in the commercial real estate lending space are rare. Their are a few local credit unions who might do a line of credit on a investment property but the majority of lenders will not. Good luck.