All Forum Posts by: Will Porter

First big warning: transferring property to a business entity will probably trigger the due-on-sale clause on your mortgages (i.e., you might suddenly have to pay the FULL amount of all 3 mortgages on the day you transfer into the company)

Second big warning: the best legal advice is that which comes from a competent practicing lawyer

So... I'm going to strongly encourage you to suck it up and pay for an hour with a competent local lawyer to discuss your goals and the best course of action to achieve them.

@Richard C. ok let me modify the story a bit.

1. Property A is a partner who is using the HELOC to provide the cash.

2. I will live in Property B for at least one year (to obtain FHA loan or equivalent)

3. I want to make sure that the partner in Property A is able to get his money back quickly (goodwill and proof-of-concept and all that)

With this arrangement, I assume it will be much easier for me to cash-out refi.

I'm curious if it makes sense to use a home equity line of credit (HELOC) to fund the down payment & rehab on a buy-and-hold rent property, but I'm not sure what the exit strategy would be. If you just pay back the HELOC over time, it would be like having two mortgage payments (1--the mortgage on the new property and 2--the HELOC) and that would probably kill cash flow. So we probably want to see a different exit...

Can you do a cash-out refi or something else to pull out a lump sum to pay off the HELOC?

Here's an example of what I mean:

1. Obtain HELOC on Primary Residence A for $50,000

2. Purchase Investment Property B using the $50,000 for down payment, closing costs, and rehab

3. Refinance Investment Property B within a year to get the $50,000 cash out and payoff the HELOC

4. Now I have two properties (A and B) and one new mortgage (on B) but my HELOC is recharged to do it again

Is this possible? Or are HELOCs only ideal for flips? Or is there some other way to use the HELOC for buy-and-hold rent property?

@Belinda Lopez can you tell us a bit about how this works? What happens at the event, etc?

Wow amazing work (and great profits to match)

 Do you have a link to this article? Tried searching and couldn't find anything about CMAs by Brandon.

Hi @Jill T. !

So what has this realization actually done for you? We love hearing details and success stories here.

Hi @Joseph West welcome aboard. Spending your time doing REI and photography sounds awesome to me!

Be sure to join us at the Houston meetup next week:

Houston Meetup - Wednesday, September 10, 2014 (at 3rd Floor bar in Midtown)

These outrageous prices for small multi-families are giving me a real headache right now. Anything on the Houston MLS seems to have gross rents less than 1% of asking price. I guess it's time to start getting creative with my search...

If you don't know anything about websites, why not hire someone who DOES know? What is our mantra here... leverage other people's time/money/knowledge.

Do you think your time is better spent doing other things?

Would you be asking this same question about a lawyer or accountant?

I'm not trying to be harsh, I'm trying to help. The fact that you asked "What's the difference between a 'website' and a 'wordpress site'?" tells me that this is going to be an enormous task for you.