All Forum Posts by: Cody Harmon

Thanks for the list I saw this a while back in another post and lost it. I called Pen Fed from the list a few weeks ago and they are no longer doing HELOCs on investment properties. After that I called FirstBank in Colorado and I am well into the process of getting a Heloc on an investment property, but it is now 70% LTV not 75% like the list shows.

Hello,

I am the seller of a property that want under contract and should close within the next 25 days. My circumstances have changed since going under contract, and I would like do a 1031 exchange. Is this possible at this point? If so what is the.besy way to go about this change?

You are a contractor right? Find the money guy, maybe a friend or family member and partner up on a distressed property.  You provide the labor they provide the funds. Brandon Turner from BP wrote a book on this particular topic:

The Book on Investing in Real-Estate with No and low Money down.

https://get.biggerpockets.com/nomoneydown/

Also, if you do plan to the the traditional financing route you should be able to find a bank that will do 20% down.

If you can't find a Money guy you could purchase a house or 2/3/4-plex with a 3.5% FHA, and live in one of the units and rent the other rest.  Then move out and do it again when it makes financial sense. I believe you have to occupy the property for at least a year.

Buying a rental with little no money is not necessarily easy and will take some sacrifices but it is possible.

Thank you Russell, she is beginning to mail to a target neighborhood. I particularly like to idea of the neighborhood website with news updates. We were considering a value add blog/website of some sort, but didn't know what type of content to provide, this is great!

Hello,

My wife recently got her Colorado real estate broker license, partially to help with our investing, and also to try and earn some extra money. She just began working as an agent, and the competition for agents in the area is very tough to crack. She has been telling everybody we know that she is an agent, as well as giving business cards to everyone she can.

I have came to BP looking for tips she can use to begin to break into the market as a new agent. We are looking for some creative ideas to set her apart from the pack, and get some sells under her belt. Also, what are your thoughts on Zillow premier agent, is it something a new agent should begin using immediately? She is reading a some recommended books we have heard mentioned on BP podcasts, any good reads you may know of would be appreciated. Thanks in advance for any advice.

Hello,

Thank you for the response Rosston. my concern is not the tenants leaving. I would like them to stay, but I know the property will rent easily. The current landlord currently has all 3 year leases, 2 of which are over 15 days before I would take ownership of the property. I am worried that the current owner will sign two new 3 year leases at $200 less than what I am going to ask, and was wondering if there was any legal way to prevent this from happening, such as writing it into the offer?

Hello,

I am looking to put an offer on a 4 plex in the next couple days. The listing agent provided me with the current leases for all the tenants, and I noticed 2 of the contracts expire in about 20 days. Rent has risen drastically in the the area over the last 2 years, and I was counting on raising rent a bit on 3 of the units including the ones with contracts expiring right before I take ownership. One of the tenants has been in for a long time and I am wondering what could stop the current landloard from theoretically lowering the rent 15 days before I take ownership? 

Can I write anything in my offer letter stating that the offer is based on no new contracts or contract modifications being negotiated with any tenants from the date the offer is submitted until I take ownership?

Thanks!

BP,

I wanted to let you all know I believe I answered most of my questions by talking with a friend of mine who works as a lender.

As for converting the property from Primary to Investment, I can pull a Heloc, Purchase the new property as primary, and refinance the my current home as an investment all at the same time. He said I could do it through multiple lenders but it will probably be easier to do it all through the same.

To solve my questionable DTI for doing this, he also mentioned 75% of the current lease on my other investment property can be wiped off my outstanding debts if I provide the lender with a copy of the current lease. This puts me easily below the threshold. He also said I may be able to wipe the 75% debt of my home I am converting to an investment based on the appraised potential rent, but he said most lenders will require a signed lease.

Hello BP,

I have been lurking here for some time, and I have found this community invaluable. I recently got an interest in real estate investing. I purchased my first property about 8 months ago, and had a new opportunity come up that I don't want to miss out on.

Here is what I would like to do:

I found a home in the area I live that I would like to purchase. I will be living in the primary living space and renting out the lock off. I would like to also convert my current primary property into a rental. This is where it gets confusing for me. In order to do the deal I will need to pull equity from my current primary residence, be it a heloc or cash out refi. The cash out refi option will probably take to long to allow the deal go through, so I believe the heloc is my only route. My primary residence will apprise for about $440,000 and I currently owe $240,000. The property I would like to purchase is $450,000, meaning I would need to pull out about $115,000 to cover the down payment and PITI, I also have about 10k in the bank to use toward this endeavor.

The problem:

I am confused on how I can convert my primary residence to a rental with a heloc on it. Lets say I get the heloc, the first question is; When I purchase the new property I would like to do so as a primary residence, can I have 2 primary residences at the same time for a short period of time, or do I need to refi my current primary as an investment with the same lender at the same exact time? The next question; Can I refinance my current primary as an investment if I have a heloc out on it, or is this sort of frowned upon, and can it cause problems with the heloc?

I will also be very close to the fannie/freddie DTI limit if I pull the heloc, after I purchase the new primary with the heloc as a down payment, and re-fi my current home as investment, and factor in my other investment property, and no other debts my DTI will be at 42-43%. I have read in some places the max DTI is 36% and in others the max DTI is 43%. Which is true.

I am also open to any other creative solutions that may increase the feasibility of this deal working out. I am interested to see how some of your real estate experts would approach this deal.

Thanks in advance!