I'm hunting for a local bank to refinance the balance I have on my HELOC and 401K that I used to purchase my 1st rental property and renovate it. The estimated market value is $165K and I have $130K outstanding between the 2 debts. I'm looking for a 30-year fixed rate and all I can find so far is 15-year with higher interest for my current cash-out situation.
I read of a strategy somewhere on BP where I can Write a Promissory Note and a Deed of Trust, to properly segregate the business from my personal finances and that when refinancing, the bank would treat it as any other mortgage. Am I missing anything? Can I do this all myself or do I need an attorney?
Do I need to create an LLC to accomplish this, or is it doable as a Sole Proprietorship?
I'm hunting for a local bank to refinance the balance I have on my HELOC and 401K that I used to purchase my 1st rental property and renovate it. The estimated market value is $165K and I have $130K outstanding between the 2 debts. I'm looking for a 30-year fixed rate and all I can find so far is 15-year with higher interest for my current cash-out situation.
I read of a strategy somewhere on BP where I can Write a Promissory Note and a Deed of Trust, to properly segregate the business from my personal finances and that when refinancing, the bank would treat it as any other mortgage. Am I missing anything? Can I do this all myself or do I need an attorney?
Do I need to create an LLC to accomplish this, or is it doable as a Sole Proprietorship?
@Thomas B. You should be able to find a 30 year fixed note without much issue. Why restrict your search to only banks? That is likely why you are only being offered 15 year because banks often have limited product offerings.
@Jay Hurst: what do you suggest? I am a newbie investor, so I have no experience outside of the conventional mortgage I have bought my primary residence with.
@Jay Hurst: what do you suggest? I am a newbie investor, so I have no experience outside of the conventional mortgage I have bought my primary residence with.
I'm hunting for a local bank to refinance the balance I have on my HELOC and 401K that I used to purchase my 1st rental property and renovate it. The estimated market value is $165K and I have $130K outstanding between the 2 debts. I'm looking for a 30-year fixed rate and all I can find so far is 15-year with higher interest for my current cash-out situation.
I read of a strategy somewhere on BP where I can Write a Promissory Note and a Deed of Trust, to properly segregate the business from my personal finances and that when refinancing, the bank would treat it as any other mortgage. Am I missing anything? Can I do this all myself or do I need an attorney?
Do I need to create an LLC to accomplish this, or is it doable as a Sole Proprietorship?
Right now I think you should be able to find some financing the conventional route should be available and due to curiosities of the market right now we're seeing private money money for investment properties (even 30 year fixed) are not wildly different than conventional non owner loans. Happy to help you out if you need a deeper discussion around it you can just message me.
