All Forum Posts by: Adam Keffer

Thanks for the response Christina.  Did you have to present a Business Plan for the loan to be accepted?  Was the rate fixed? %? length?

Hi All,

I recently found a duplex in a good area and ran it through the Rental Property Calculator with good results. The list price is $230,000. I wanted to initially get a HELOC against my primary residence (owned free and clear) for the down payment (roughly 70k with closing costs, etc.) Only problem is it takes 3-4 weeks to close. I'd like to get an offer on the table ASAP as I feel this property won't last long.

A couple options I see...

1. My mother has offered to use her HELOC and gift the funds for the down payment. To my understanding, conventional loans won't work here as gifted monies need to be seasoned to be utilized. Which leads me to....

• Does anyone know of any portfolio lenders (in the Pittsburgh area) or other types of loans with which this is acceptable?  Bank Names? Types?

2. Using my mother's HELOC for a cash purchase and then agree to seller financing terms with her.

3. ???

I may be overlooking some other options/details as well.  Any help in regards to the best and fastest way to get this deal done would be much appreciated!

...and yes, I know, I should have lined up financing well before I found my first deal! :)

Thanks!

Thanks @Andrew Syrios!

@Anthony Angotti, I'm interested in mainly rental properties at the moment. It seems like the general consensus is to utilize a HELOC over a HEL to fund my first deal and then follow the BRRR strategy to keep the HELOC open for future deals.

@Megan Hirlehey, thanks so much, that was very informative and helpful! What part of Pittsburgh are you from? Are there any good meet ups around that I could attend and network?

@Gary Swank, thanks, I will be on the lookout. 

@George Blower, thanks!

Thanks for all the feedback and well wishes, it’s much appreciated!

@Sean Ridlon, that’s something I have not heard about but would be interested in researching. Could you elaborate a little? 

Part of my issue is determining how I should start financing my first deal due to the plethora of options available. I do want to move into a new home and have another baby within the next 2 years, so I need to factor that into the equation as well. 

@Dan Mackin, I think I would prefer starting off small and not carrying any debt for my first deal. That being said, I know if I want to scale I will eventually have to leverage outside funds to do so. 

Hi All!  

My names Adam and I'm a new member here from Pittsburgh, PA.  

I've always been interested in REI and have since become more serious since I found the BP Podcast and Forums. There is so much useful and awesome information available! Looking forward to searching out local deals and getting my feet wet finally. If I've learned anything at all so far, it's to take ACTION and stop waiting for the perfect time to dive in.

A little bit about me...  I'm 35, engaged, and have a 9 month old baby girl at home.  I live in a townhome in the North Hills which is %100 paid off.  I'm looking to leverage the equity in my home (@$165k) to fund my first deal.  My credit is good and I have no debt, so I don't anticipate having any issues getting traditional financing.  I also have @$65k within my 401k.  I'm interested in both Single Family and Multi-Family homes as long as the numbers make sense, obviously.

Can anyone provide suggestions for financing my first deal? Should I go HELOC or Home Equity? Should I limit my search to homes less than $165k?

Any feedback would be greatly appreciated, thanks!  Super excited/eager to learn and to get my first deal under my belt!