All Forum Posts by: David Pascual

@Chris Seveney

i apologize in advance if i didnt understand this right, but im confused about a specific part about what you said.

In your example, when you say banks will want 20-30% down when I refinance, it sounds like your saying that i need to come up with $40,000 "out of pocket", but I already have that in equity in the property. so theres nothing more i need to put down out of pocket except closing costs and other bank related fees, that is what you meant correct?

I need some clarification on using the BRRRR strategy. When you make the initial purchase of a property using this strategy, must it be done buying it cash? OR can the property be acquired using a conventional mortgage loan, do the rehab on the property and then refinance whenever that specific banks seasoning period is complete? I'm aware that banks don't usually give out loans on homes that need heavy rehabs but i mean if it's a home that just needs remodeling because of its old age let's say.

@Andrew Postell

Ok I see. would doing this process of using an LLC work with a conventional loan as well?

@Andrew Postell 

Andrew, so hypothetically speaking lets say i partner up with a friend where i find a deal and my partner puts the mortgage in his name since he was good credit but both our names are on the title. i put the property in an LLC, will it matter if i am the one who makes the mortgage payments at this point?

someone above was talking about not having the deed to a home, does that come to play in this scenario at all? will that cause issues?

I've been reading a lot of debate where people argue about whether one should or shouldn't put their property in an LLC , that isn't what I'm asking, what I would like if to know is if investors who put their properties in an LLC do it without letting their lender know that they have OR if they disclose with the lender that they plan to move the property to an LLC (or maybe you try to get agreements without the due on sale clause?) . I was reading an earlier post about a person who told the lender they were moving the property Into an LLC and they basically told him the bank wouldn't allow that. I would imagine that many banks would tell the same thing to everyone. The clause is there for a reason. I know that the due-on-sale clause is not really enforced in many areas but why don't banks enforce it? Is it because they don't know or they don't care?

@Steve Racicot steve I understand where your concerns are coming from but I found your comment slightly insensitive. I did not decide this career path after watching HDTV on house flipping hoping to make millions in one year. Ive been reading books and educating myself as much as a can before I do anything as well as having the help of other investors look over deals, so I am not going into this alone. of course using my parents credit can be highly risky, but I did not demand their help on this decision, they merely offered me their help to help me achieve this goal. I only wanted to hear the opinions of others on how to use this opportunity or if its even a good idea. If not then I will find another way. There is no reason to question my abilities as a future investor if you do not know my story, but perhaps you misunderstood my question or I misunderstood your comment. Good day sir.

David

@Danny F.  i'm not sure if i tagged you in my response above

Danny F. I like that idea a lot, but I'm not sure how that would work in my case, since i personally wouldn't be qualified enough for an FHA loan, and neither could my parents since they are currently using an FHA loan. What do you think about a cosign? Having a steady job, Could I personally apply for an FHA loan and have them cosign so that I may qualify? If this is the case would the mortgage be in my name them? And would their DTI ratio still increase as cosigners?

I am wanting to start investing in real estate in my area using the BRRRR strategy and am currently looking at ways of buying properties. Now, since I have not built enough credit yet to obtain a mortgage on a property, my parents have offered to put the mortgage of my first property in their names (my name and theirs would be on the title) until I'm able to build enough credit to do it myself. I personally would be paying the mortgage loan on that property through them. they are not interested in being paid a portion of the cash flows so I would be taking all of the rental income to help me advance in future projects. Now, by doing this would they be only adding another liability to their name and increasing their debt to income ratio since they aren't receiving income from the rentals? In other words if I wanted to buy two or three more properties with their name on the mortgage would they eventually not be able to since their DTI Ratio would be so high?

Tom Cafarella Perfect, thank you tom.