All Forum Posts by: Caitlin Faulk

@Ben Daniel

I have a wonderful property manager that is currently managing a handful of my properties. She is incredibly professional, sharp, proactive, assertive, and has a wonderful network of reasonably priced vendors/contractors should a maintenance issue arise. I’ve been very pleased with her work…worth every penny! I’ll PM you her contact info. Let her know I sent you. 

Just to understand the proper step (in my circumstance)…

- Heloc funds transferred to LLC account (marked personal injection of funds).

-Funds transferred to title from LLC for closing. Rehab costs held back in LLC, but noted as "escrowed" on HUD. Rehab funds distributed in draws to personal account.

To file the LLC's mortgage note here in FL it costs .35/$100. I'm assuming there isn't a way around this?

Thank you!
 

@Andrew Postell

Hoping this is still relevant, planning to implement on the next deal. Thought I had a grasp on it, then noticed (around page 12,lol) a few updates to the strategy. 

1. Now recommended, funds actually transfer from LLC account

2. Rehab amount listed on HUD and kept in escrow (but held back)? Can you further explain why this is necessary?

3. Note and lien filed by LLC at 0% interest, 12 month term, balloon payment = purchase+rehab

Wondering if I missed any other relevant changes or updates to the original post?

Does the LTV increase if the LLC is in a different name than the borrower? Example wife, LLC/ husband, borrower.

Thank you for taking the time over all these years to continue to share this strategy. 

@Andrew Postell Thank you for this valuable article. As well as your detailed responses to the many posts. Can you point me towards a lender, licensed in Florida, who has experience facilitating this method? I’d like to use this method on my upcoming deal.

@Kerry Baird Thank you. I’m wondering how this may compare to the CMG “all in one”. I was researching it this morning. Sounds like a similar product, I will look into both (rates, fee’s, etc). Have you used the RL “AIO”?

Lined up my first deal $350k. Planned to initially fund entirely with a HELOC from my primary residence, which is owned free and clear, currently valued at 510k. Having a hard time finding a bank to HELOC over 100k. Credit is excellent, DTI low, six figure w-2 income. Not sure what the problem is. I thought the HELOC would be a breeze. Can anyone share who they used and terms as of recent for a HELOC? I'm in Florida. Thank you!

Echo @Joe Villeneuve!

If the numbers work. Have you considered...
Heloc the purchase and repairs (same as cash) Once seasoned (many banks require 6mos), Refi to hold long term. Pay off Heloc with Refi. 
Cheers, to “falling lap deals”!

@Greg Scott Thank you! Yes, I understand your concerns. And they are legitimate. I was actually saving this topic for my second post, lol. Since you asked, the area in which the property is located is going through a huge transition. New construction, on small lots is consuming the majority of the rural land. There are those who want land, and it’s becoming hard to come by.  A brand new k-8 school is expected to open in 2022. It is already a talking point and very desirable. Flipping it is an option, although I feel there is still quite a bit of appreciation to happen in the next 12-24 mos. Ideally, I’d like to hold on to it and rent it in the meantime. Inventory of this kind is virtually non existent in the local rental market, so it’s very hard to say what it’s value would be to someone wanting land who has horses. I am hoping someone who is local to Central Florida and has an understanding of the boom happening in NW Apopka will see this post and give their two cents. Currently, my focus is determining the best loan strategy to implement for the down payment/mortgage. 

Hello BP members. I've been reading and learning from all of you for a while now, waiting for an opportunity in my area to jump on. While sitting on the sidelines as prices increased by double digit percentages this year, I decided to get my (financial) house in order, so when an opportunity came my way I was ready. I have paid off my mortgage and last week I negotiated my first investment property!!! Due to the nature of the sellers move, I have 8-10 weeks to organize and complete financing on my end. I’m fortunate enough to have a couple different financing options and am open to creative options as well. I’m hoping more experienced minds would give me their opinion on the best mortgage products/acquisition/strategy to implement for the down payment and mortgage  (heloc,refi,2nd home loan,primary). My current plan is to buy and hold (brrrr after 6 mos if needed). I’ve listed the basic info below. 

• Thank you for your guidance!

• Property Info
• FSBO
• NW Orange County, Florida
• SFH ‘96, 2,600ft, 4/2.5, pool, 2 barns, 2.5 acres
• PP-$350,000.00
• Minimal cosmetic repairs/cleanup $10k
• ARV- 520,000 (Zillow currently 510,00)
• PropTaxes- 4,800/yr
• Prop Ins- 3,000/yr
• Qualification info (for loan)
• Credit 740
• Primary residence value $550K (no mortgage)
• 20k cash (earmarked for property)

Hello BP members.  I've been reading and learning from all of you for a while now, waiting for an opportunity in my area to jump on.  While sitting  on the sidelines as prices increased by double digit percentages this year, I decided to get my (financial) house in order, so when an opportunity came my way I was ready. Last week I secured my first investment property!!! Due to the nature of the sellers move, I have 8-10 weeks to organize and complete financing on my end. I’m fortunate enough to have a couple different financing options and am open to creative options as well. I’m hoping more experienced minds would give me their opinion on the best mortgage products/acquisition/strategy to implement (heloc,refi,2nd home loan,primary). My current plan is to buy and hold (brrrr after 6 mos if needed). I’ve listed the basic info below. 

Thank you for your guidance! 

1. Property Info
2. FSBO
3. NW Orange County, Florida
4. SFH ‘96, 2,600ft, 4/2.5, pool, 2 barns, 2.5 acres
5. PP-$350,000.00
6. Minimal cosmetic repairs/cleanup $10k
7. ARV- 520,000 (Zillow currently 510,00)
8. PropTaxes- 4,800/yr
9. Prop Ins- 3,000/yr
10. Qualification info (for loan)
    
11. Salary $153k
12. Credit 740
13. Primary residence value $550K (no mortgage)
14. 20k cash (earmarked for property)