All Forum Posts by: Eduardo Rodriguez

Thank you, Mitch I will be looking into that

Hello BP community, I have a property listed and had an interested party approach me with can I rent to own?, can I do a lease with an option? etc, honestly, I was unprepared to answer this since I had not considered this strategy and since have become curious I would love some feedback regarding this practice, my understanding is as follows:

• Option to purchase on a lease is typically 1% of the value (non-refundable, but credited to down payment if the purchase goes through)
• rent is increased by 10% for forced savings (non-refundable, but the amount in excess credited to down payment if the purchase goes through)

  would greatly appreciate direction and resources to aid in making this transaction a success, my questions start at:

1. should I pay for an appraisal now and add X% to that for the future purchase time frame I.E. 250K Appraised + 3% for every 12 of the lease term or
2. should the price be set at the time of purchase (who pays for the appraisal)
3. I have an agent listing this now, how would the agent make his commision on a scenario like this (the agent did not participate in putting this deal together) Should the agent be involved?

just to add, I have gone through this in Texas banks and they will not lend on investment properties via the HELOC, small banks do not want the second position but may discuss loan options if you own the investment outright, apparently, this applies to properties located in Texas, (I also heard that the Texas legislature is looking to ease restriction regarding this practice).

@Alexander Wardell Before you commit to any money clear the planning and zoning, some local issues like fire marshal have a lot of requirements I looked at this a few months ago and the city requires a zoning petition taking months . Good move if you are patient

@Greg Davis Great question I am struggling with this my self and have been getting a bunch of NO’s as well Great information from the contributors I will be sure to look in to Penfed. Good luck

I am in your same situation, already talked to the lawyer, this is done routinely, you can ask for permission (they will say no), some credit unions don't care the best option is to do it, they will advise you on the due on sale clause and you will have time to cure (at this point you can transfer back to you) the bank forgets about you, then you transfer back to LLC (u will not pay the note) worst case scenario after a few years you probably need to refi-cash out get a bank that doesn't care.

just keep knocking on doors and making phone calls, I finally got a good deal to sink my hooks in to and have your same issue, in the middle of a refi-cash out to buy this other property and the bank is throwing a wrench on the deal by asking me to pay off a car note to make the 51%DTI ratio. this bums me out but will keep pushing on until I get financing secured to nab this other property, maybe hard money to buy/fix and rent ( I am trying to avoid doing this), or maybe 203K loan, there are too many options, you need to exhaust all possibilities until you get one that fits. good luck brother.

you could rent the place for 6 months until its "seasoned" and the bank will not hit you with that mortgage, after the refi- you can keep or sell. I am having the same issue, the bank wants to commit half the cash-out money to pay off a car loan to qualify.

@Mike Castellow For sure mike we do a bit of API work now that West Texas is wide open. We can certainly keep in touch or meet up once a REIA comes up

Hi BP community, My name Eduardo (Eddie) Rodriguez and I like to use a list for brevity and accuracy my intro as follows:

• I have no background in real estate but own 3 properties; only renting one I live in one and one is in transition to sell or fix up and rent. I have probably made all the wrong moves as I start to learn from BP what to do and what not to do (too late!)
• I was born and raised in Mexico in a border town but have been living and working in the states since 2001.
• I currently work full time as QA/QC Director for an Industrial construction company, I have been here since 2002. 
• I really was just parking money in real estate but now that I am almost 40, I really want to be secure in my retirement and have started to realize that I have an opportunity to make some moves now to help achieve this goal.
• Joined BP by chance as I googled and watched youtube, signed up for a webinar and signed right up.