All Forum Posts by: Caleb Drake

We have HELOC options for 1-4 unit investment properties, but title being in the LLC is the sticking point. There are a few fixed HELOC options that will allow title to be in a LLC, but you receive the funds in a lump sum.

Is there a pre-payment penalty?

The HELOC's do not, the HELOANS occasionally do.

I am asking about the HELOANs specifically.

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Destin, Florida

Pints and Properties Real Estate Meetup

Come join us at Doc’s Hop Shop for Pints & Properties in Pensacola, FL. The meetup was designed to build a community of like-minded people, motivated to crush it in real estate. We collaborate over beers, share knowledge, and network with those on a similar path, while expanding our knowledge base together.

Not stuffy, zero sales pitch, and good vibes only.

Topic: 2024 Market Update

Guest Speaker: AJ Dicarlo

Date: 18 Jan 2024

Time: 7pm (6:30pm Networking)

Location: Doc's Hop Shop (500 E Heinberg St, Pensacola FL, 32502)

If you have any questions, please reach out to me via Bigger Pockets or at the phone number in my signature block. This meetup averages between 40-70 people depending on the topic and the month. We are a large group of hustlers looking to grow our portfolios, network and learn!

1 Vote

Quote from @KC Pake:

Quote from @Caleb Drake:

I have a performing STR in the Florida Panhandle that has around $100k in equity I'd like to tap into. Does anyone have a lender or is a lender who does HELOCs on rentals titled in an LLC?

Hi Caleb,

To tap into the equity of your short-term rental in Florida, especially if the property is titled in an LLC, a few things to consider:

Lender Options: Look into HELOC lenders like Figure, Spring EQ, Hitch, and Bethpage Federal Credit Union, which offer various terms and rates for investment properties.

Qualification Criteria: You'll typically need a strong credit score (around 720 or higher), an LTV ratio of no more than 80%, and adequate rental income for debt service. Florida law requires retaining at least 20% equity and limits equity cash out to once per year.

Risks and Costs: Rental property HELOCs are seen as higher risk, leading to stricter approval requirements, higher fees, and interest rates compared to primary residences.

Funds Usage: HELOC funds can be used for property improvements, capital repairs, or as a down payment for additional properties.

Alternatives: If a HELOC isn't suitable, consider other options like a HELOC on a primary home, a home equity loan, a cash-out refinance, or a personal loan.

Thanks KC.

We have a property we just finished a rehab on in Alabama and need to borrow funds (probably for 6-9 months) to pay off the rehab expenses that are sitting on our business LOC. Same partners in the FL LLC own the cabin.

Maybe a home equity loan is a viable option? A refinance isn't happening--rental is sitting in a 30-yr AM loan at 4.25%. I won't take a personal loan out for a property in a partnership.

Maybe there is a better option here as well?

The Alabama lake house is worth around $425k but we have a loan for $209k and need about $75k to pay off the business debt. That being said, the last two lenders I've talked to said I cannot do a cash-out refinance on the property due to the seasoning period. We just hit six months ownership.

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Destin, Florida

Quote from @Nick Velez:

@Caleb Drake

Is there a pre-payment penalty?

0 Votes

Destin, Florida

I have a performing STR in the Florida Panhandle that has around $100k in equity I'd like to tap into. Does anyone have a lender or is a lender who does HELOCs on rentals titled in an LLC?

4 Votes

Destin, Florida

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We do these on the third Thursday of the month usually. This month, we are doing it on the third Tuesday due to a scheduling conflict of mine.

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Come join us for another Pints & Properties in Pensacola, FL. This month we will be talking about short-term rentals.

Just a Q&A and brainstorming/networking event. The guest panel will include myself, Ben Scarbrough, and Haley Ferguson. Combined we have almost 20 AirBnBs under management with another 5+ in the works.

Come hang out, meet some awesome people, and network like a boss. We have between 30-70 members show up each month. It's completely free of charge.

2 Votes

Quote from @Nicholas Glatter:

Quote from @Caleb Drake:

Quote from @Ben Scarborough:

@Caleb Drake

Thanks Ben. Every investor in this market wants a Sub2 deal right now. Tough to find. Most of them come from direct-2-seller campaigns.

Hey Caleb, thank you for the comment. I was able to find about 8 off-market leads in 2 days that were ready to sell. I did not expect the outcome nor did I have the foundation to support roughly 50 responses to my outreach. I'd love to talk with you sometime to discuss your buy box and see going forward if I can bring deals that do not fit my investing

850-407-7652

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Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $39,000

This deal is one that we recently took down as a BRRRR. I bought the property on the MLS and used private money for both the purchase and the rehab. The rehab went over budget, but the refinance is allowing us to only leave 10% in the property. This is standard right now with all the local banks in the area due to the fed tightening.

Numbers:
PP- $30k
Closing cost: $372
Cost of money: ~$900
ARV: ~$80-85k
Refinance: $60k
Equity:$20k+

0 Votes

All Forum Posts by: Caleb Drake

Caleb Drake has started 42 posts and replied 178 times.

Post: HELOC on Rental!

Post: Pints and Properties Investor Meet Up

Post: HELOC on Rental!

Post: HELOC on Rental!

Post: HELOC on Rental!

Post: Pints and Properties Investor Meet Up

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Post: Investors looking to connect? Mississippi Gulf Coast, Pensacola FL, New Orleans LA**

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