All Forum Posts by: Enrique Vazquez

I am finding less and less financial institutions do HELOCs in Texas.

I'm interested in getting one for 70% to 90% on a $560,000 fully paid home to finally buy my first multi-family deal! I have it under contract and closing in 45 days.

Not interested in hard money or a traditional mortgage.

Credit is at 700, but with some changes already done it should go back to the 800-810 I've had for years.

Does anyone know someone that can help?

I was Craig. I didn't imagine the credit card rules would apply in a line of credit were if you use too much it would hurt you this bad.

An update: I got an angel investor to loan me $100k and have paid off the line of credit. Now I have about a week and a half to finish the house, and refinance right away. Let's see what happens. Credit is now at 700. I still have ways to go to get back to my 801.

Just thought of my own solution. I'll find the total owned from a third party. Maybe Hard Money or Angel Investor. Pay the line of credit. Wait a month or two to reflect and then refinance and pay lender in full with refinance.

I guess I just needed to put it in writing for it to make sense. Thank you.

Hello,

I've been so proud of my 801ish credit score for the last few years that I put it to work. I got a line of credit at a somewhat high 7% rate and paid "cash" for the SFH. The rehab took considerably longer than expected (6 months), and now that I am about to finish I noticed my credit got hit with 114 points!!! Now at 687...

After a very careful check I see that the three changes are: Debt to income ratio (only because of the line of credit), hard inquiry increase (by one), and a slight lower on credit history (because of the new line of credit). 

At 687 I think I can still get a mortgage, but it won't be much better than the line of credit. 

I am very fortunate that I do make a good salary and can pay the entire line of credit in less than a year. This would mean no new investing until that is done though.

Is there a better way?

Got it. Thank you. My plan was always to work together with the management company to find a solution. I did not consider the zoning! Automatically I assumed they were multi-family because on how they are built, but I am sure being timeshares there all sorts of differences. Thanks for the tip. Thank you everyone for your responses. 

If someone out there has done something like this in the past I would love to hear from them.

Ok. So what happens to these older time shares with decent locations? Wait until they can't pay their taxes and the city takes over them?

Yes. The leg work will be excruciating. But, lets put a big IF and say this can be done, and most owners will gladly let it go for less than $5,000. Using private money at low interest. 

Will this work? Any other pitfalls to look out for? Has anyone done something like this in the past?

Hello, I have a close relative with an issue on his time share. They bought it for all the wrong reasons and now are annoyed on all the fees they are paying. They have never used it. It is now a class C facility on a class B location. 

What's worse is that the management company regularly sends a P&L statement where they are in the red. They have been in the red for over 3 years. Many of the owners I've heard of don't care for this old time share, and appear to not pay their fees.

I'm thinking this is an opportunity to get cheap real estate and convert them to regular apartments. 

Has anyone done this before? Any tips? Issues to be careful of?