All Forum Posts by: Conte Cuttino

What is the purpose for him being on the refinance? Did you recently open the entity you are going to close with on the refinance? What is your ownership percentage in the company? And was he also on the company when it was initially formed? 

That all depends. Why are you using a partner for the refinance? Are you using a partner for credit purposes? 

@Conte Cuttino I’m also a Long Island guy investing in Florence. Check out Finklea, Hendricks & Blake. My Florence PM recommended them and I used them recently for some title work.

Excellent question.  We do this all the time with partners.  

Deal #1:
Partner one puts all cash in.  Partner two refinances all the cash out.  

Deal #2:
Partner one puts the cash BACK in.  Partner #2 refi's cash out, again...and,

Deal #3:
Partner..., just repeat as many times as you can refinance...then find another refi partner, and start another string.

This method allows you to "use" your cash an infinite number of times, with credit partners, splitting the returns, leaving behind a series of cash flow properties, and the best part of all,...you never spend any of the money...no matter how hard you try.  It keeps coming back to you every time you refi.

Joe Villeneuve
REcapSystem
A2REIC

@Conte Cuttino - I think you are onto something. If you sell the property, a lot of the $107K cost will be eaten up in transaction cost. You want access to equity but you also want access to the full profits without safrificing it to expenses to expand your business. Are you able to move into the property and make it your primary residence? That will allow you to build the additional legal space further amplifying the value of the proprety (more HELOC money). It will also allow you to pull out a HELOC in the 90% LTV range since it will be your primary residence. You will be accessing a majority of that equity without having to pay transaction costs. Not sure your living situation but something I would definitely consider if possible.

@Conte Cuttino - I think you are onto something. If you sell the property, a lot of the $107K cost will be eaten up in transaction cost. You want access to equity but you also want access to the full profits without safrificing it to expenses to expand your business. Are you able to move into the property and make it your primary residence? That will allow you to build the additional legal space further amplifying the value of the proprety (more HELOC money). It will also allow you to pull out a HELOC in the 90% LTV range since it will be your primary residence. You will be accessing a majority of that equity without having to pay transaction costs. Not sure your living situation but something I would definitely consider if possible.

Makes sense @Andrew Freed so say if we I can make it additional legal space, do you think the 107K left in the property for the return is worth it or should I sale and move on?