All Forum Posts by: Charles Jessup

Thanks for the reply Charlie.  
No, we haven't done an appraisal yet.  The bank told me that $300k is the approval limit because my current debt to equity ratio is too high for more.  
I think what's happening is that the bank is looking at my other investment properties as liabilities rather than assets, and they are considering the mortgages that I have open there but not the revenue coming in to pay them off.  

I'm comfortable borrowing more for this property, even if it's another 2nd mortgage from someone else at a higher interest rate, but I don't know how to get one.

I'm trying to buy a owner-occupied commercial property for $345,000, and the bank will only approve us buying $300,000.  (Loan of of $270k & I put $30k down).  I have 30k for a downpayment but not 75k to reach asking price. 
How could I look for a second loan source for the difference?  Would that affect the bank's willingness to loan for the property? 
Do you know someone that could help me?

My wife's business is expanding and she needs more space. We're considering buying a commercial office property instead of renting.  We live in the Houston, TX area.  

I have a few questions, and would love any other advice you have for us:

1. 1. Is it worth the hassle of setting up a second company to purchase the property, or should she just buy it with her original business?
2. 2. One seller is offering a lease-option.  Are those worth it?  Anything to watch out for?
3. 3. Can we get an SBA loan for this?  I've heard it's an option but also heard they only pick certain people and don't want to go through the hassle if we won't qualify.  
4. 4. Growing a business is expensive enough as it is, and coming up with a downpayment on top of that is going to be tricky.  What do you suggest if we don't quite have enough?  Are there other places we could look to borrow?  

Thanks for the help!

Hmm, I got a quote for that, but it just seems ... wrong ... to refinance at a higher interest rate than what I have now.  

Maybe that's my backup option

I have an investment property in Texas (worth $200k, existing mortgage of $100k at 4.25% interest) and I want to either refinance or get a 2nd morgtage on. The banks have not been helpful, most of them straight up refusing to do a HELOC. I have a good tenant and don't want to sell, but I do want to tap the equity so I can invest it in another business.

How can I pull some equity out of the property?

@Randall Jacobs, why the strong feelings about seller finance?  Bad experience? 

Also, why does everyone doubt their intention to actually follow through and buy?  I know I'm new, so please educate me.  

Thanks James and Tamara,

I'll try to get a 1 year lease and then if she still wants to buy it we can discuss a sale then. The tenant is a former homeowner so I'm inclined to believe she's serious about wanting to buy.  

Hi Biggerpockets community,

I'm trying to rent out my house (Houston area) for the first time, and I had a potential tenant contact me who's moving in from out of town and wants to rent before buying a house soon, maybe my house.  

What are my options here?

I don't really want to rent to someone who's going to move out in 4-6 months because of vacancy costs.  I'd be willing to sell if the offer was good, but they can't buy right now.  I've heard of lease-options, but I've also heard they're difficult to execute in Texas.  I think there's a way to to a delayed sale, but I'm not sure how that would work.  

If you were in my situation, what would you do?

Update:  I signed the disclosure.

My reasoning was as follows:

1. The lender said that it wasn't a big deal, that the home warranty section can be changed within the three days, just not the loan terms.  

2. My real estate agent said the same thing, and I trust him more.  He also promised to make sure they correct it first thing Monday.  

3. The contract that I agreed to with the seller said they paid for it, and I believe that trumps a lending disclosure.  

4. Not signing could lead to re-doing the closing date, which doesn't benefit anyone involved.  

I hope this doesn't come back to bite me...

Good Idea @Wayne Brooks.  I'm not sure I can though.  It's an electronic document, I can only click on the line to sign my name.