All Forum Posts by: Jason Pavloff

I'm currently shopping with a few lenders and in the process today some told me that... due to the fast my duplex was homesteaded. That I would not be allowed to do a cash out refi on the property. I'm trying to do a cash out refi on my on my house which is currently an FHA. I want to convert it over into a conventional to get ride of not only the PMI, but to then use those funds to later put into another rental property.

I was told under texas law "A6" that since I homesteaded the property which I currently occupy. That the homestead is what is keeping me from doing a cash out refi.. So far with the 4 banks I've talked to. This is the first I've heard of this. 

Does anyone have any input on if this is just an uneducated loan officer... Which I'e found few know the ins and out of multifamily investments. 

A mechanics lien has been around since the 18th century many people dont even know what they are. Every state has a slightly different clause on them, I'm reading up on them currently to see if they can be used in a creative, lawful way. 

I just wanted to see what others knew about this trick he is proposing. I reached out to a few lawyers late yesterday and I'm waiting to hear back.

I was told that instead of doing a HELOC that there is another way to pull money out of my property. A mechanics lien...

I've searched all over the internet the last 2 hours, and nothing really talks about what my loan officer is trying to do with in the laws limitation of a mechanics lien. If any Texas real estate lawyers are lurking, please let me know if this is possible? I was told a mechanics lien can do a 90 LVT. A loop hole for Texas basically. 

I'm in the process of closing on my primary residance. I just found a multifamly propertery that just come on the market. However I'm still probably 25-30 days until I close if nothing goes wrong.. which could. I need to money from my current sale to qualify for the mutlifamly I just found. So I'm probably 50-60 days before I could close on the mutlifamily. Since I dont think I can qualify with out the money from the sale. Which means I can't really apply until I have money in hand.

Anyone have any creative way(s) to offer the owner of the mutifamily?

I wanted to offer the asking price however have two clauses:

1) That if the property doesn't apprsie for the asking price then the offer would then be for what the apprial comes in at? It this a good or bad idea?

2) obviously the second is if I dont qualify, but I should I'm just covering my butt.

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From what I know if the 1031 money from the lake house is enough to cover the duplex then yes. But if they need additional funding from a bank. A bank will not lend to a property in an LLC. You see an LLC protects the property which a bank cant go after. If they default on the bank, the bank cant touch it. This is my understanding of it, so don't quote me on it, but I'm pretty sure that's how it woks.

Lets say the entire money from the lake house coves the duplex, and 3 yrs from now they want to take equity out. They contact a bank for a HELOC. The banks wont do HELOC on properties in an LLC. Again this is what I've been told.

If someone out there knows different please let me know.

When it comes to lending, rather it be the owner of the property getting the loan or the bank, which resides in another state. Which state law has the bigger hand? The state where the property resides or the state where the funding comes from? 

Is there a loop hole here...?

OK how about this? could I cash out refi, change the loan to conventional on my current duplex? Then on the 4plex apply for an FHA , and owner occupy? And If I did change over to a conventional loan, would I then need to stay at my current duplex again another 6 months - 1yr?

Aslo... Let's say I also need reserves and my down payment takes that up all my money. What about getting hard money only to use to show I have money for reserves.  Then once I close with the banks on the 4 plex,  I just pay back the money to the hard lender? Good idea or bad? 

Ok.. So I've read a few real estate book, I'm no pro and yet obviously, and the advise I get from people in the industry hasn't been 100% true. 

My problem, I'm trying to prepare myself for my second buy and hold multifamily property. My first was an FHA owner occupy 3.5% down duplex. It's been almost two years now and I would like to buy my second. However I'm finding issues..

1.) I was told I could get into my second, multifamily owner occupy, with just 15% down... I'm being told that isn't so... 

2.) I'm also being town I can't use the income on the current property that I want to buy, 4Plex, to help qualify, I dont really need it really, but it sure would make things look a little better if I could. 

3) 6 months reserves need...?  my current duplex is $1500 gross cash flow. The current 4 plex  has 3 units rented out with a combined $3200 income, and one unit vacant. If I move in and owner occupy it would be about $500-$600 gross cash flow... 

I guess my biggest issue is that on my second multifamily unit.. I really can't go into it with just 15% down like I've been told by a few loan officers, correct? And if so, what house hacks are out there to help make this happen? 

Also i'm trying to see if I can cash out refi on my current duplex to help push me to 20% down.  Portfolio lenders are telling me I need 20-30% down before they would help...