All Forum Posts by: Ben Capone

I am analyzing some multi family properties and one of the properties is a tri-plex with two attached units that are unpermitted. Assuming this is likely why the selling price is lower than expected. Does anyone have experience purchasing a multifamily property with unpermitted units? What are the risks here? Appreciate any feedback or tips. I think this property has some great opportunity but I don't know what the worst case scenario would bring here. This is in San Diego county for reference. 

 @Chris Davidson and @Scott E. that makes sense and thanks for the input. I have 2 properties with a partner with plenty of equity built up. This property I have my eye on is out of state and my partner is not as comfortable/ready to try the out of state play. Unfortunately, I don't think he will sign off on a heloc if he is not in this deal (completely understandable). That's what lead me here. Any other potential down payment funding ideas I could look into? Obviously "gift" from family/friends but if I am not mistaken, I can't use a gift as a down payment on second home/investment property financing. 

Hey all, exploring some options for a personal loan to get a down payment on a place I am looking at. Has anyone had luck taking personal loans out for down payments? Or any other good options I can explore? Looking at making a move as soon as possible.  

@Christina Rodrigues I just purchased my last place using funds from my 401k. It was an extremely easy process and very lucrative considering what the stock market has done vs the housing market in the past 6-8 months. 

I don't know what the process is like for the type of 401k you are referring to but with my company's program I was able to take a penalty and tax free loan as long as I pay it back within 30 months. 

I have been a huge advocate for this type of strategy if available. Highly suggest.

Thanks for clarifying @Erik Browning. I do ideally want to purchase the new place with the least amount of $$ down. So now you have me thinking that if I can get in with minimal cash that I have liquid and then pull a renovation loan, I wont need to have the cash for renovating necessarily...

Something for me to look into. Thanks again.

@Nathan Grabau really appreciate the info. I will look into these and see if I can make this work. 

 Hi @Erik Browning thanks for the response. I have looked into renovation loans previously as my current residence was a complete gut and remodel. Luckily, I work in the construction industry so have some good connections for cheap materials and labor so never needed to follow thru with the loan. Maybe I misunderstood, but based off your comment it sounds like I can pull a renovation loan to act as part of a down payment to get me into this next move?

Correct. I have previously done conventional loans on my two properties, which I am not opposed to doing again at all. My biggest hurdle right now is finding the best and smartest way to access the equity I have built and use that to get into this next property.

I am not completely against ARMs by any means, but if I can figure a good way to tap into the equity and use as buying power I don't really think I will need to stray too far away from conventional lending. 

@andrew 

@Andrew Garcia Where would I look for a Cross-Collateralization loan? That sounds interesting, have you used one previously? If so, would love to hear some feedback on how that went and what the details are.

@Nathan Grabau Yes, this would be on my primary residence. I will have to look into the .99 plus prime Heloc. Have you used this before?

Thanks for the info

I have 2 condos in the san diego area that each have about 150-200k equity. One is rented long term and cash flow positive. The other will also be cash flow positive based off what current trends are showing in the area. I am locked in with very low rates on both and do not want to cash out refi as that will wipe out my cash flow.

I have my eyes set on another property that I would like to make a move on. I am hoping you all can lend some suggestions, contacts, experiences on some other types of creative funding that have worked for you or worth looking into. HELOCs, portfolio loans, etc??

Any and all help is greatly appreciated!