All Forum Posts by: James Passemato

Hi everyone! I'm looking into taking out a HELOC on our owner-occupied SF home to use for future deals! I've done some research on local banks that offer HELOCs in San Diego and seems like the best options may be either Mission Fed, SDCCU, or US Bank:

https://www.missionfed.com/Home-Equity-Line-of-Credit

https://www.sdccu.com/CURates/EquityLineandLoanRates.pdf

https://www.usbank.com/home-loans/home-equity/home-equity-line-of-credit.html

Does anyone have any advise on which option to proceed with (either based on numbers or personal experience in SD) or another local option that I'm missing? Also this is my first HELOC, so any insight into the best way to compare the options beyond the obvious interest rates offered would be appreciated!

Yes @Trevor J. I'm still learning as well, but from a first glance the 203K loan and the GSFA program in CA seem like great ways to get started in real estate! Essentially the 203K loan would allow you to wrap rehab costs into the loan, so you could buy a more distressed property and do the rehab work upfront without extra cost out of pocket. And the GSFA program is something I stumbled across in my research, but it looks like they will lend you up to 5% towards your downpayment and/or closing costs with a 0% interest loan that also has the opportunity to be forgiven after 3 years! I'm researching lenders in the SD area now who have experience with both of these programs to get a little more info.

Hi @Trevor J.! I saw your post here and I'm trying to do something similar in SD. I am looking to utilize the FHA 203K program if possible to roll rehab costs into the loan! I also happen to be a mechanical engineer like you and @Ryan Weimer, funny how we gravitate towards real estate! Would love to connect with you both and bounce some ideas back and forth!

Hi everyone,

I've been listening to the podcasts for a while now, had tried to partner last year with a friend on deals that unfortunately fell through, but now I am finally getting ready to jump into my first deal! I think the first route I'd like to go is with an owner-occupied FHA loan. My biggest challenge right now is capital for the downpayment, especially since I live in SD which is a hot market. I will eventually invest out of state but for now I'd like to start building equity in a property here rather than continue to pay rent. Also starting to build equity in a property now can help me leverage that equity into properties of the future.

After some research in loans in this area, that drove me to find the GSFA program in CA, which seems like a great program to help with downpayment assistance and provide a 0% interest loan that can be forgiven after 3 years! http://www.gsfahome.org/programs/platinum/overview.shtml

It's also pretty hard to find a deal in SD, so I'm considering adding value to a property through an FHA 203K loan, such as taking a 2br property with enough sq footage and adding an extra bedroom.

The last piece I'm considering adding is the FHA energy efficiency loan, which can be rolled into a 203K loan, reduce electricity expenses over time, and would allow the GSFA downpayment to be provided as a 5% downpayment "gift" that never needs to be repaid (basically a free 5%).

In summary, I'm looking to combine the GSFA program + FHA 203K loan + FHA energy efficiency loan. In talking with my sister in law who's an agent that recently dealt with an FHA 203K loan, she stressed the importance of finding a lender with experience in this, especially given the requirements of finding specific licensed contractors for the work and the amount of time that it would take to put a deal like this together.

Figured I'd ask here first to see if anyone had worked with lenders in SD before on a similar type of deal and what their experience was like, and if they had any positive/negative recommendations of lenders to work with!

Thanks for your advice, happy hunting!

James

My partner and I are new to real estate investing and are getting ready to invest in our first property in Milwaukee. After listening to mayn podcasts and webinars about partnerships, we've heard the description that one partner brings the money for the down payment, and the other can secure the loan and manage the property for a 50/50 split.

For this example my partner has slightly more funds than I do going into the deal. When I reached out to a lender the other day about pre-qualification and pre-approval, I told her how much money I had in my bank accounts and she said this wouldn't be enough money for the down payment on the price range of properties I was looking at. I explained that my partner would be funding the majority of the down payment, but she said that I can't just accept a transfer of money from her to help fund the down payment. Our original thought was that I would put the property in my name because I don't currently own any property, but now she also has to be on the loan to show the funds in her account as well.

I guess I'm confused because I got the impression that one partner could fund the deal and one could take out the loan and manage the property as part of the deal. Am I missing something or is there a certain way you have to plan or approach this process? Any tips would be appreciated!

@Tanner Federspill great question! I'm actually starting to go through the same process for investing in my first property in Milwaukee, so all of this feedback is helpful. I'm actively in the process of reaching out to banks and lenders so my partner and I can be pre-approved once a great deal is identified. I've also been contacting local realtors and property managers to understand the neighborhoods better and build a winning team for the first deal!

Thanks @Michael Henry! I will be sure to reach out!

Hi Kyle,

Great thread! My friend @Liz Greaney and I are also looking into investing in multi-family properties in the Milwaukee area! This would be our first property so we're trying to learn as much as possible beforehand. We're actually planning a trip out there in the end of July and any assistance with good property managers/investors/agents. I would love to connect with @Rebecca Knox @Marcus Auerbach @Justin Cooper @Matt Maurice @Michael Henry so we can talk more about the different areas of Milwaukee, appreciate everyone's help!