All Forum Posts by: Daniel D.

Easements are still your property and all zoning and lot requirements/calculations would include the entire lot including easements. However the buildable area will likely not include the easement area. Your yard requirements may very well start inside the easements reducing the buildable area as compared to a lot of the same size without those easements. Would have to check your jurisdictions specific zoning code for the wording and calculation basis. As @Bryant Brislin said, best to get clarity from a local Architect or Engineer.  

You should engage an architect or surveyor/civil engineer for something like this.

Understood. Since it's in the name of the LLC that you own, if it's a single-member LLC some lenders can treat it as if it's a refi, but drafting a contract between the LLC and yourself and treating it as a purchase might be the better way to go. NY requires attorneys to handle the transactions (which is why a lot of us won't set foot in NY), so in this case the same attorney might be able to handle the transaction, but I still would get a local (NY) mortgage broker with strong experience and a strong credit background to handle the transaction. I wouldn't do a thing with respect to a contract until you get some guidance from someone with a NY lending background involved.

 I did this, and it is simple. You will need to qualify for the loan regardless if it is hard money or otherwise. Are you married? ANyone else you know could qualify, and you do a quit-claim deed.

First of all, Rocket is not your friend. I'm not licensed in NY, otherwise I would love to help. You have a couple of options. Many conventional lenders will allow you to treat it as a refi, but you can always treat it as a non-arms length purchase from the entity to you personally. You'll have some additional documentation, but it's not that difficult. My recommendation would be to let an experienced mortgage broker, not a mill like Rocket work with you. When I say experienced, I mean a pro with some miles on their boots. They'll be able to navigate the waters for you and offer solutions. Good luck to you!

Hi @Daniel D.

      Most HMLs are going to want to be in first position and many are going to want you to have "skin in the game", meaning they won't want you attaching a 2nd lien at the time of closing. You can potentially record a 2nd lien, protecting the other investors, after the 1st is recorded, but if the 1st lienholder finds out they may freeze your rehab holdback account. You could do a silent second, but make sure you have a good title company or attorney to walk you through that. 

It would be helpful to know what the investors are getting in return. Are you just paying them interest or are they getting an equitable share in the profits? If the latter, you may just want to form an LLC with them and outline their respective shares in an Operating Agreement. Feel free to reach out if you need more guidance.