All Forum Posts by: James Gresko

Kelly,

Thanks for your time - 

James

Kelly, 

Thanks so much for taking the time to reply and thank you for your advice.  I probably have not been as clear as I need to be in my particular case, though you did mention a joint venture as a solution. 

I am currently in pursuit of a home for myself in a very hot niche market, and the strategies you have mentioned (with the exception of a JV) usually fail as offers the great majority of the time because the sellers get the cash they want and walk away - no strings attached. That is my competition, according to local agents, investors and market professionals in this particular market. If DF limits my ability even with an LLC, I suppose a JV or private funding are the options to consider.

Thanks again.

ANOTHER Dodd Frank question: 

How do I get around the owner/occupant restriction for Hard money?  

After several hours of research, I've been unable to come up with some answers to this dilemma.  A lot of people know about the restriction, but I've not found any who've come up with some legal strategies for getting around it.  I have not consulted w/ a RE atty yet, however. 

Because of good credit and ability to pay, I can readily finance a cash offer for almost any deal I'm looking for with hard money or a loan from a bank, but when it comes to buying a home for myself, I'm at a loss because I depend on these sources to complete a cash deal.  I provide only partial funding myself.  I buy old homes and rehab them, but the lenders tell me I CANNOT mortgage the home under my name and occupy it after the rehab.  Which means if I run across a property I want for myself, I'm  limited to homes that will mortgage.  But even if they will, cash buyers rule in the Fort Worth market.  I lost a very good deal this weekend to a cash buyer that I could have outbid.   

Is this a proper or complete understanding of this rule? Will an investor friendly bank extend a LOC loan (or something of the sort) to me personally and still be DF compliant under this circumstance? Will an initial cash purchase though a created LLC be a better solution?

Thanks in advance for answering a question that has probably been answered several times and in several ways.  I've just not come upon it yet.