All Forum Posts by: Connor Augustine

Hey! I am in the process of helping my dad do a cash out refinance on their primary so we I use the cash to fund another deal.  I do not want to have his name on the properties because my other investors do not want hands-off investors.  My question is how can he give me that money without there being some sort of huge 'gift' tax associated with the transaction?  Some have said that we can structure it as a loan where I pay my dad back over time but I am unsure if this is the best way to structure this.  Please let me know if you have been through this or have any advice.  Thanks! 

This is an interesting concept! So I am assuming that the cash out refi raised your interest rate on your primary? How much did your interest rate change? If the numbers make sense and your STR cash flows, I guess that interest rate becomes less of a concern. And then you can refinance your primary once interest rates lower again I assume? Also curious how much your cash out refi was and how much your STR was if you're willing to share! Thanks.

Hey @Christian Ortega, In order to cash out refi with this STR, did you have to wait for a seasoning period of STR income in order to complete the cash out refi? I am assuming the buy and hold process is the same as it is for LTRs when having tenants and showing the monthly cash flow for however many months. I am curious to know how this process differs from your standard BRRRR using LTR. Thanks!

Hello!

I am planning on working with a family member to take a HELOC out on their house to fund my next BRRRR deal. I am curious if there are protections or legalities that need to be in place before I can use that money for a deal? I am just assuming that it is not as simple as take the HELOC out, they give cash to me, and I do my deal and give the cash and interest back. Thank you!