All Forum Posts by: Justin Holley

Real estate business owner friends. My firm and I are hosting a webinar today about the economic stimulus package signed in the wall last Friday. We are wealth management firm who over the past week have been coming over the over 800 pages of the economic stimulus plan. Our goal for the webinar is to put this complicated topic into simple implementable information that any business owner can understand. Please note that there will be no solicitations of any sort on the webinar. It's free and informational. Register at https://www.pacificadvisors.com/stimulus

She wants to get out of Dodge.... 

I would like to get the BP community's opinion on what to offer and how to structure a deal for the following:

~Divorcee

~Loan is her husband's name and he is pushing hard to get the mortgage out of his name.

~She is is up to date on payments on the mortgage, because she is using her credit cards for everything else and she is calling behind on those payments.

~She was ordered by the court to refi the mortgage into her name, but cannot get approved.

~ARV is 180k-190k

~Real Estate Agent wants to buy an option to purchase it in September 2020 if I purchase it

~Amount outstanding on the loan is 100k

~Current payment 850 (principal, taxes, ins)

My first idea is to purchase it subject to....

My second is to short close and paycash of 110-120k

I have spoken with 3 lenders at this point. The property is in my name not the LLC. On all my non BRRRR I have easily gotten conventional financing. I guess I will continue calling banks.

Sorry, I should have included the following info. Purchase was in cash and rehab as in cash (no private money, hard money or lenders). I recorded a mortgage on the property with my LLC, so I could refinance without a seasoning period and without it being a cash out refi. Anyway, the bank has been given none of this info. They only know that I am requesting 75% LTV refinance. The bank seems to be hung up on it being a non-primary investment property even though it is a single family.

@Andrew Postell has a great post on the LLC mortgage strategy.

I am about to complete my first true BRRRR. I am in the refinance phase of the project. Here are the details. This is a single-family residence, ARV 90k, purchase price 20k, rehab was 38k. I am looking to refi into a 30 year conventional at 75% LTV. The problem I am running into is when I speak to local banks they are saying since it's an investment property the rate will be bumped up to 7.5% even though I have stellar credit. My question is the following. Am I presenting my property incorrectly to the lenders? Please forgive me but I thought one could get traditional financing on SF BRRRR properties. What am I missing here?

@Andrew Postell

May I record this after closing directly with the county recorders or did I need to do it through the title company at the time of closing? I believe I can do it after with a mortgage and note, but just want to get your opinion. Thanks and great post.

@Andrew Postell

Justin Holley

@Andrew Postell 

May I record this after closing directly with the county recorders or did I need to do it through the title company at the time of closing?  I believe I can do it after with a mortgage and note, but just want to get your opinion.  Thanks and great post.

@Chris Mason

Thanks

@Jaysen Medhurst thanks for your reply. If using the BP BRRRR calculator your after cash out refi returns will be different given whether you roll the points/closing cost into the refi or not. If you, input in the calculator that you are paying out of pocket then, of course, your appraisal doesn't have to come back for as much to show that you have an "infinite" return (no money left in the deal return) but this can be misleading because you may have chosen to pay the closing cost for the refi out of pocket. Leaving the opportunity for money left in the deal.

I guess all I'm really asking is whether the majority of BRRRR investors are rolling in the closing costs and or points into the cash out refi.