All Forum Posts by: Bob Ross

What I’m saying is, this shouldn’t be considered “throwing money away,” it COULD be used as a way to increase equity which would leave me with more money (via equity) than I started with to then reinvest in real estate.

I want to put an addition on my home - I want more living space for my family and to change the look of my home.

I am also looking to become a real estate investor.

Is it an ok strategy to build the home addition, which will in turn increase my home equity (by more than what I can build it for) which I can then access to fund other real estate deals? Or is it foolish to build the addition, and I should use the funds I have first to invest in real estate.

Thank you

@Greg Scott

So is it safe to say, a benefit of a home equity loan

Is when there is a liquidity requirement (down payment) that you otherwise do not have? Even though you do have (and must have) the overall borrowing capacity for the would be loan? -The liquidity you get from the home equity loan makes the deal possible in other words

@Greg Scott

Does the heloc then hurt you mortgage borrowing capacity?

I bought a fixer upper as my first home and was able to build some good equity.

I tried to get a home equity loan with the intention to make a down payment on an investment property with the funds.

I was told I could not get a loan because I was already maxed out with my mortgage/income cash flow.

If my wife starts working we could then probably have the additional income and qualify for the equity loan.

My question is, what would be the point of the equity loan in that case? Given the additional income, Why not just buy a second property with a regular mortgage?

What is so appealing about buying additional properties with home equity loans?

Thanks

When you have considerable equity in a home,

Will a bank give you all of that money, no questions asked to do whatever you want with?

Or do they need to verify your income to ensure you can make the monthly payments on the equity loan?

Thanks

I would like to purchase a single family home that also has a trailer on the property with tenants. My bank said they don’t finance trailers/mobile homes and another said the trailer on the property will not be able to be added to the appraisal.

Are there any other ways I could try to get a mortgage? I was thinking a private lender? How do those work? Wouldn’t want to do hard money.

Thanks

I just lost out on a house to some paying cash. It got me thinking, can I buy a fixer upper with a hard money loan, in order to make a cash offer?

Seems like this will greatly enhance my chances of actually getting a home my market. Could I then use additional hard Kirby funds for renovation and then sell the property to myself

And get a congenital mortgage? What would that process be like?

Thanks

@Jordan Fulmer

Thanks for the feedback.

Quick question, if adding a significant addition and renovating, can your end product be considered “like new?” can you compare it to properties a bit newer than the original age of the house?

I’d like to buy a small, older home in a high end town with the idea being to add on an addition with a bathroom, garage, family room - whatever it may need to become a more modern home with more square footage. With the goal of gaining significant equity.

I believe it will be important to look for a home with much more expensive homes nearby for comps. But my question is how close will do?

Some thing I’m finding are homes for say 450k with maybe a 1.1 million dall’orso home a couple streets over. Will this work for a Como

If the home to the left and right are 450k as well?

Does the “half mile” rule apply?

Thank you!