All Forum Posts by: Andrew Postell

@Cassandra Alessio what are you doing with the property?  Meaning, are you rehabbing it into a single family home?  Is it going to be a gas station?  What's the end goal for this property?

@Stanton Ward thanks for the post here!  Always great to hear from a fellow Texan.  I wish more people would use their primary home as an investment property later - it's one of the best techniques out there.

Now, to help with some things:

1. Ownership - If you buy an investment property you do NOT have to add your spouse to title.  It is a requirement on your PRIMARY home here...but not on an investment property.

2. Buying a 2nd Primary Home - You can absolutely buy a second primary home at any time after you fulfill your current commitment.  Meaning, if you committed to live in a property for 12 months, and you have done so...then you can buy a smaller/larger home at any time.  It's when you move BEFORE you fulfill your commitment is when everyone starts needing reasons. Don't get me wrong here, we still want you to be 100% ethical with what you are doing, but once you fulfill your obligation, it's your right to move.

3. FHA and "nuances" - Now, here's where it gets a little annoying and complicated with some Texas laws.  We are a community property state.  That means you own your primary home with your spouse - EVEN IF YOU DIDN'T SIGN ON IT. There are many and numerous court cases that will reinforce this. If you are married and you aren't on title....you legally own that home. The minute you get married - spouses have rights (according to Texas law). Now, if you have an "iron clad prenuptial agreement"...ok, I don't know on those (you would have to go to court)...but in just about every other scenario, spouses have rights to the primary home. So, when you go apply for your first FHA loan...and you already have ownership rights in a property with a FHA mortgage...even if you didn't sign on it...then FHA will have something to say about it. FHA can make it complicated when getting a second primary home in that scenario. HOWEVER - conventional loans don't have these same complications.  You can get as many conventional primary home loans as you like!  So, it would be easier to just go a conventional route when the time comes.

*WHEW*  Who knew there would be so much to this?  Little details do make a difference.

Feel free to reach out with any questions and maybe we'll cross paths out there!  Thanks again!

@Luis Herna this is a refinance.  So, refinances don't require "downpayments" per se.  They do require equity in the property to refinance.  They also usually require "reserves" to refinance (most loans do at least). How much equity?  How much reserves?  That's why you need to get prequalified ahead of time.  Getting prequalified tells you all of those numbers.  It is entirely possible to not need any money out of pocket to refinance a property.  Just get prequalified with a good lender and they should be able to tell you those numbers ahead of time.

Hope all of that makes sense.

@Judd Nutting thanks so much for the post!  Very happy that this strategy worked out for you.  It's been around for many years at this point and it has certainly helped many people.

Now, as far as profitability - there are THOUSANDS of businesses that don't show a profit.  So, showing a profit isn't a problem.  Are you required to generate income though?  I have a feeling I need to defer on that part of the question though.  Certainly recommend speaking with a CPA on it or maybe just posting that question by itself in the Tax Forum.  Probably a few people in there that can help with it.

Thanks again!

@Johana Villamil yeah, I'm confused too...why are we talking to them about how long you will own a property?  We are just inquiring about being a GC, right?  If you have other questions about different things...please don't ask them.  They aren't a legal department.  They aren't title.  They aren't lending.  Yes, there are OTHER things to home ownership but we just want you to be a GC...right?  GC's work on all sorts of properties.  Not just their own homes. Try it from just that angle.  If you are still getting stuck, reach out to some San Antonio Real Estate groups and get with another GC or something.

And I want to be clear on what I am saying - I'm not saying what you want to do is the best way to do it.  I'm just answering your question - how to be a GC.  

Hope that makes sense. 

@Jamie Warcken well, I was going to ask why you didn't go the renovation loan route or get a HELOC but if you are unemployed then you wouldn't be able to get those. Unless you find a lender that would give you a loan with no income then you would be limited to friends/family/or current resources.

@Don White thanks for the post. @Kyle Mccaw have any contacts down there?

@Johana Villamil thanks for the post!  Always great to hear from a fellow Texan. 

Now, in Texas, you don't need a license to be a General Contractor.  You can just be one right now.  Congratulations!  You did it!  Now that you are a GC...you'll need to learn how to apply for permits and insurance.  This is where your costs will come into play.  In San Antonio, contractors are required to register with Development Services and obtain liability insurance.

So, just reach out to the agency and see what they say.  You can also reach out to some real estate investment groups or contractor groups on San Antonio Facebook pages. There are several and many have hundreds of members.  

Hope some of that helps!

@Arjun P. thanks for posting!  Always great to hear from a fellow Texan.  

Building homes is very different than rehabbing homes.  For financing a new build, every lender will require experience building new homes.  Until you have that, you won't be able to receive a new construction loan.  However, with rehabbing loans...experience is suggested but not a hard requirement. 

Hope that helps in some way but feel free to reach out if you want to talk anything through. 

@Colleen Barone this has so many layers on it but read this post on seasoning HERE and this post (at least the first section) HERE.