All Forum Posts by: Colton Hamilton

@Steve Morris

When talking to my friend he did specifically that he could borrow cash and use it for whatever he wanted and did say he could use it to buy a fix and flip house (his broker is through Wells Fargo). But you're right for the most part (everything I've read) it is mostly used to reinvest in the stock market. Thanks for the reply!

@Matt Hurley 

Thanks for linking that article! It was pretty informative for the basics. After reading the article and doing a little more research I've gathered that you can't technically borrow against an IRA or 401k. There is a thing called limited margin account, which I understand even less about, that would let you borrow a limited form against an IRA.

I’m fairly new to the real estate game and I am looking for creative ways to finance deals. I have my father-in-law and his wife interested in investing. They are the people who have a lot of investment worth but not liquid funds. I came across the idea of having them setup a margin account from a friend who has one. Before I make the suggestion I was wondering if anyone here has taken this path and what their experience/advice is as far as a margin account.

Thanks!

@Dominique B.

Awesome! I’ll definitely look into that for sure!

Thanks!

@Dominique B.

So you do you own the property free and clear with no loan attached except in the future when you put the HELOC on it? I'm interested because my first rental property I bought I only owe 72k on it but with a reappraisal it's be worth 150-160k and I want to put a HELOC on it but it's hard finding a lending institution that will do that without it being my primary residence. Any insight is definitely appreciated!

Btw, nice job on the deal!

Newbie here,

I'd like some thoughts/feedback on an idea my dad and I had on getting financing for our first real house flip. I currently have one house I bought and rehabbed and currently renting it out. That house is worth almost double of what I owe on it. I am living in my current home which isn't worth much more than I bought it for. I am working my regular "9-5" job for consistent income. I have a good credit score and good income to debt ratio. My dad has his current house which has a lot of equity in it but doesn't have the ability to go through traditional means to acquire loans (due to past mistakes) so he can't leverage his home but has good income to debt ratio.  My dad is working his job (which is extremely flexible). We are currently brainstorming ideas on how to go about getting financing for a flip. 

The idea we have is, I "buy" his house for what he owes on it and in turn I can use that to get a line of credit for what the house is worth (which is way more than what he owes on it due to him completely rehabbing the whole property) or some other form of financing that might be available to me. 

Sorry if everything isn't completely clear. I will do my best to clear it up when/if questions/responses come in. Like I said I am a newbie and this is all new to me so I am learning as I go. 

Thanks for any responses ahead of time!