All Forum Posts by: Clayton Silva

Short answer: yes get a lawyer involved always

Long answer: the other stuff depends.  What is the exit strategy?  How do they get paid back?  It does not always make sense to have the note recorded on title as it can cause other complications down the road, but that also means much less protection for the lender so it really depends on the circumstances.  No matter what, have a good real estate attorney draft docs for both your protection and lender's.  

Sacramento and Stockton are both pretty good markets for that strategy.  I have worked with a number of investors in both markets and have a number of great realtors I work with in both markets.  I personally specialize on the financing side of the house and help people get from where they are to where they want to be in regards to lending and financing these deals!  Let me know if you'd like to connect (I also live in between Sacramento and Stockton, so very familiar with both)!

Part of it is detached garage and using existing structure + existing electrical. For me to build an ADU in central California at my current house would cost only about $80k and would rent for $1500/month which is almost 2% rule. You can't find 2% anywhere on long term rent but to get that in CA with CA appreciation is massive.

Because I live in the stupid litigious state of California and I don't want my house locked in probate if something should happen to myself and my wife. It's to designate specific beneficiaries similar to a will so there is no confusion when we pass.

Definitely varies by state/county but typically you can prep the deed yourself (fill out a form) and then it's like $100 to record it with the county. 

I'll let you know soon I have to QCD my primary this week into our trust haha but it's a pretty simple process so far. 

They can, most of that is available in most states, but too many little niches to break down on each loan product haha.  The big asterisk is HELOCS on investments are not allowed in TX as of right now 

I have talked to hundreds of clients regarding real estate lending, and a lot of people are still not aware of what is out there!  A couple quick examples of products available you might not know about!

30 year fixed, low interest rate DSCR BLANKET loans (put multiple 1-4 unit properties under one loan for cash out or for purchase).

Ground Up Construction loans for aspiring developers with NO Experience

100% Financing on Fix and Flips (just pay closing costs and prepaid taxes/insurance)

Fix and Flip financing that requires no appraisal

HELOCS on investment properties

Builder's Forwards (for medium to larger developers who want to hedge interest rates on their properties they plan to sell so they can offer "low builders rates").

DSCR loans for long term AND short term rentals (I think this is becoming more and more common, but some people have still never heard of this).

And so much more!  

Small hurdle, we typically see people QCD into their personal names, secure the HELOCs, and then switch back to LLC. We also have HELOANs and HELOCs that can fund with the LLC in place I believe, but they are not as fast/good/easy as the ones that fund in personal name.

Recently had a mindset shift here in CA when a successful investor told me about how he gets good cashflow in CA.  He buys nice homes (700k range and adds ADUs to them for around 100-120k) All in he's at 800k and he will generate between 6-7k/month in gross rent which usually nets him around 1k/month in true cash flow.  He also gets to enjoy California's low property taxes and high appreciation which has worked well for him.  But I work with investors all over the country that are still getting great cash flow in many markets, they are just getting creative!  Personally, I get great cashflow in my NC markets that I invest in, and have gotten to enjoy a lot of the appreciation there as well.  

We offer product like this and it can be a very arduous task. Down payments are still standard for FHA or conventional (3.5% of the total cost, purchase+construction) and rates are on par with standard FHA rates. The issue is that these loans undergo significant underwriting and can take up to 60 days to close which most sellers may not tolerate. Still doable, just a much longer process!!