All Forum Posts by: Andrew Garcia

Hi @Philip Anthony, I would suggest a second mortgage on this property. You could pull out about $230k and finance the other $40k through hard money or private money.

Then, once it is built, you can access some of that equity through a HELOC, second, or refi on your primary. Use that to pay off the hard or private money loan.

I recommend against a HELOC because most HELOCs are ARMs so if you are planning on holding the debt for over a year, I would advise against it due to the rising rates.

Hope this helps! Let me know if I can be of any assistance.

Hi @Bruno Morales, the best way to do it is to create an LLC. That provides you with tax benefits and legal protection.

Financing can be tough, but there are foreign national loans that are available. They are similar to DSCR loans with no income, job, or credit check, if you do not have US credit.

If you would like more information or have any questions about financing for foreign nationals, feel free to reach out.

Hi @Mario Cruz, house hacking is a great plan! With an FHA, you do not need to use up all your assets. It is only 3.5% down. You can then buy a single-family in a year with 5% down and live in it for a year and repeat.

With house hacking, you either have a significantly reduced monthly mortgage payment or none at all!

With a single-family, you generally have more comfort and higher appreciation. 

It really depends on which strategy you prefer. If you go with single-family, also look into 3% down conventional financing.

Hope this helps! Let me know if I can be of any assistance.

Hi @Farida Hussain, below are my responses.

1. To get started, you do not need an LLC. Especially if you want the best rate. As you scale, an LLC is a must have.

2. You can look in lower priced areas or create the cashflow yourselfby putting more effort into finding a property (off-market, motivated sellers) or into rehabbing the property (BRRRR)

3. Talk to a local investor-friendly realtor.

4. I am sure there are some Houston agents on BP!

5. You can claim taxes, insurance, and mortgage interest expense on your Schedule E of a tax return. Ask your CPA or tax-preparer to make the deductions.

6. There are so many things to consider but an agent would probably be your best bet into local considerations.

Hope this helps! Let me know if I can be of any assistance.

Hi @Guadalupe Pena, I am a little confused by your question. By definition, this is not possible.

Equity = Value - Mortgage

Hi @Account Closed, the biggest issue with a variable rate HELOC is that you could end up paying a really high rate. At the beginning of the year, rates were in the high 2s and low 3s. Now there are some products in the 6s. With the inflationary concerns, rates will likely go up.

Ensure that you can make the payments if the rate doubles. Otherwise, you can look into getting a fixed-rate HELOC or HELOAN.

Hope this helps! Let me know if I can be of any assistance.

Hi @Pafoua Vang Xiong, it really depends on your goals.

If your goal is to make additional one-time income. I would sell.

If your goal is to obtain a cashflowing asset, I would BRRRR.

The issue with selling in today's market is that it can take 3 months to re-deploy your capital. By then, you might have to pay $20,000 more for a similar property. 

Hope this helps! Let me know if I can be of any assistance.

Hi @Yohannes Sium, the reason that your loan officer is saying that is because the 3% down program is only for people that:

1. Make less than 80% of the median income for the area you are in.

2. Have not owned a home in the past 3 years.

You have two options:

1. Go FHA and put 3.5% down.

2. Go conventional and put 5% down.

Ask your loan officer to run a side-by-side scenario for each.

Hope this helps! Let me know if I can be of any assistance.

Hi @Ben Unger, I can help with that! Licensed in Texas and up to 97.5% CLTV on primary residences.

Feel free to shoot me a message to discuss this further.

Hi @Andrew C., (great name by the way) most people start off in conventional. You can get up to 10 conventionally financed properties in your name. Those come with the lowest rates but they do not lend to business entities. 

Therefore, you will be looking at a few different options:

1. DSCR - They lend to business entities and they qualify you based on the income generated by the property, not your personal income.

2. Business purpose loans - Similar to the DSCR. They qualify the business based on the business's income generated from properties. You can use this to fix up, buy, or renovate properties.

3. Portfolio loans - This is where you start to have a lot of different properties. You can cross-collateralize them and they typically do not require you to personally guarantee them.

Hope this helps! Let me know if I can be of any assistance.