All Forum Posts by: David Light

Thanks for asking this question. I'm planning a refi and hadn't even thought about a HEL or HELOC. Time to reasess things!

@Bill Hamilton thanks! I'll go have a read. I think you're right and the folks I previously talked to were in experienced.

@Upen Patel thanks for the feedback. I am a U.S. Citizen just living in the UK right now. Sounds like we could put the property in the name of our partnership and just the partner that's in Texas could get the financing. Which would be great.

I've searched the forums and still have a few questions on this one.

I currently live in the UK and have a house under contract with a partner in Texas. The purchase needed to be cash to get the deal so we're looking to refinance within a year. I've previously been told that because I'm paid in GBP I can't get financing in the U.S. My partner is good to get the mortgage with the bank on his own if needed.

Should the house be in the partnership name or will my being in the UK impact the financing then? If the house is just in his name do we just have an agreement that the house, outside of the deed, is part of our partnership and its terms?

Thanks in advance for any help.

I've searched the forums and still need some help. I currently live in the UK, originally from TX, and have a house under contract with a partner that's still in TX. The purchase needed to be cash to get the deal so we're looking to refinance within a year. I'm also paid in GBP rather than USD and have been told I can't obtain financing until I'm paid in USD when I move home. My partner is fine to obtain the refinancing with the bank in his name. Should the house be in his name or our partnership name? If it's in his name for financing purposes do we just have a written agreement outside of the deed that says the house is part of our 50/50 partnership? Thanks in advance for any help.

Check out file place under the resources section on this site. There should be examples there.

I would be inclined to sell and use the money to invest in other properties. The rental numbers aren't looking great.

If it's not much cash you may be limited to something like loaning money for the repairs required on a property. The amount depends on the project and rate. It's very possible someone may want to borrow a smaller amount of repair money at a good rate rather than tie up their own funds. I would start networking locally and try to find someone that needs cash for their project.

Completely agree with Jeremy. In addition, I would try to narrow the estimated sell price. 100k is a big range and if you're on the high end of that you could sell and use your earnings as down payments on a couple lower priced units potentially.

Hi Nathan, the 50% rule is a quick test to analyse properties quickly. It's specific to the expenses saying that over time 50% of gross rents will go to operating expenses. The remainder of rent would cover your financing, whatever form that is, and then you can calculate cash flow. Some people look for 100/door others look for 200/door depending on their market and requirements they've developed. 

If you're offering on a house it is worth doing a full work up on the house to estimate expenses in detail rather than just using the 50% rule. There's a BP rental calculator that can help with that.

Hope this helps!