All Forum Posts by: Catherine Peters

@Scott Jensen I am both the trustee and sole beneficiary since my mom passed. I want to look at tax implications of purchasing within the trust vs taking a distribution for the down payment.

Hi BP Tribe,

I am looking for some financial planning advice from a professional who has a focus on real estate, which is why I am looking for recommendations from this stellar group. Specifically, I need someone to take a look at a trust that was set up in Texas by my grandfather to see if it is revokable and if I'm able to invest in real estate within the trust. I'd love to speak with someone who is knowledgeable about real estate investing, trusts and tax implications. Any recs you could send my way would be greatly appreciated.

Thanks!

Cat

Hi Guys! Update...

I ran the numbers and we are positioned to pay off our duplex in 15 years which coincides with our estimated retirement, and adjusting for inflation, the cash flow on that property will pay for 1/4 of our entire monthly expenses. That is huge in my book. Also we have a really great rate on it and refi-ing would not be advantageous since when we refied a few years ago we were owner occupants and now it's an investment property so the rate would be higher.

I ended up going with a HELOC through 1st Bank and should close this week. They have been great to work with thus far. FYI, Pen Fed is not doing HELOCs on investment properties right now.

Thanks to everyone for your feedback! I've created a great list as a result that I will use for future deals. Stay safe and healthy, everyone!

@Andrew Postell Yes, I figured that out after I posted but still can't figure out how I did that or how to change it. Yet again, though, BP members have come through and I am so appreciative to all!

Hi BP Tribe!

We are getting our financing sorted so we can invest in some new rental properties, and have a duplex in Denver that has a ton of equity in it. We've looked into getting a HELOC on the property but none of the lenders we've talked with are interested in doing a HELOC on an investment property. We could do a cash-out refi, but I'm not sure I want to go that route. I'd love to hear from other investors who either a) can recommend a lender that will do a HELOC on an investment property or b) recommend doing the cash-out refi instead (and if so, why please). You guys have never failed to offer up excellent recommendations and solutions, and I'm crossing my fingers that this will be no exception. Thank you in advance!

Cat

You guys have been awesome! I have spoken to a few of you individually, and just wanted to give a shout out to everyone who has contributed to this thread. I am moving forward with plans to invest in the area, and would appreciate any recommendations for lenders that work with investors in the Lubbock area. Stay safe, stay healthy everyone!!!

@Joan Brown @Stuart Chinworth @Cassi Justiz @Ren Ellis @Maamun Danmaisoro @Chris Kim @Rohit Mittal

I am looking to purchase a multi-family rental property (duplex most likely) for a buy and hold position that will cash flow well. I want to keep it under $200K for a B or higher property, which of course limits my locations. I currently live in Denver and the Colorado market is really not feasible for this. I'm from Dallas and have tons of connections there, but that market has been overheated for awhile and multi-family properties are extremely difficult to find. We have a family cotton farm in Ralls, Tx which is just outside Lubbock, and my grandparents and mom are from Lubbock. Although they have all passed now, I still feel a connection to the area. After doing some research, it looks like job growth, industry diversity, and population growth are all strong in the area. Prices are reasonable and looks like they would cash flow. Taxes are on the lower end for Texas. What am I missing? I can't find much if any discussion on BP for this area. Any thoughts from anyone who has considered this location or works/lives/invests in this area? I would welcome any feedback!

@Michael Yarbrough I ended up bagging this strategy due to high costs in my area and really just biting off more than I can chew at this time. 

@Jason Chen the 1 bedrooms all come with their own garage which to me is a HUGE selling feature and there are lots of young singles in this area. Cash flow would be great, and that's hard to find in the Denver market. But only if the financing is right, so I think this is probably not going to be a fit for us.  I agree with you - just not sure how to find someone better who has the patience to deal with my newness to the game - I ask her a TON of questions and take up a lot of her time.

@Jared Bouzek thanks for the info. This is a $650K deal so maybe my broker was right in that it would be an incredibly difficult loan to get done. I see you're a lender in Denver. Do you just do commercial?

@Daniel Dietz forgive my ignorance but what is DSCR? I use the BP rental calculator, but please point me in the right direction as I must not be paying attention to this :)

@Brent Coombs that's why I was asking on here, in the lending section, hoping that they might chime in ;) 

@Daniel Dietz Thanks for the feedback! Just curious, what would be your reason for doing a commercial loan vs. a residential loan on anything with 4 units or less? Is it because you've maxed out the number on your residential loans?