All Forum Posts by: Jean G.

Hi Michael and welcome to BP!

Depending on where you live and your availability, you may want to check out Phillip Dwyer s Meetup in Henderson next Tuesday, where several BP members attend: http://www.meetup.com/Henderson-Real-Estate-Invest...

Jean

Hi Noam,

I believe that B2R Finance does foreign investors. They have a new single property product where you can get a 7%ish 30 year fixed rate, however the last time I spoke to them, that product wasn't fully released for Nevada yet, but you should check with them to see where they're at...

Jean

Hi @Aaron Knoll,

I was doing a lot of research with local banks on the same subject for a property in Nevada. I was looking more for Equity Loan (for a fixed amount) and I found this one that covers Utah as well:

America First Credit Union. They will do a 10y (both loan term and amortization) home equity loan up to 65% LTV at 4.99%. They also told me that they may be talked into going off appraisal without seasoning requirements, but the person didn't seem 100% sure.

From memory I think they may also have pitched a HELOC, but I didn't write down the details on that.

Jean

Eric Fernwood wrote a great post about why to buy and hold in LV. You can find it here: https://www.biggerpockets.com/forums/311/topics/214089-las-vegas

Hi Drew,

I was thinking about doing something similar as conventional lenders would not allow me to do a cash out refi, but they would do a refi without cash out all day long. So as long as I would somehow make a first lien appear on the property and then refi it, it would be OK! Crazy, right? I even explained this strategy to one lender and asked him if it would create any problem if the first lien was a commercial loan or a HML, and they said no, as long as there is a first deed of trust, it meets the guidelines (which is all these people really care about).

I ended up finding a lender who would do the cash out refi anyway after I called enough of them, so I didn't have to go with the above scheme, but my thinking at the time was that I wanted to use a real 3rd party for the loan, so that I couldn't be accused of fraud, so basically I was going to go to a HML. Perhaps you can talk to your usual HML and see if you can work out a deal where they charge you less point or something to help you out, and maybe you can loan the money back to them during the time that the lien stays on the house (while you're waiting for your refi to go through).

In your case though, you're only trying to optimize 5% of LTV, so the additional expenses of getting a real lien put onto the property may not be worth it. In my case, I was not getting any cash out at all due to Fannie/Freddie rules.

Jean

You can try Clark County Credit Union, they have non owner occupied loans and they only require 3 months seasoning to go off the appraised value.

There is also B2R finance that only requires 3 months seasoning but their single property loan is not yet available in NV (it could be by the time you reach the 3 months).

And then you can try LendingHome to do the purchase outright, they may give you a 8ish rate fixed for 3 years.

Jean

And there may be regulations preventing you from doing short term or long term rentals outside of the hotel's program...

Jean

@Dawn Anastasi: Thanks for the link to the thread, unfortunately it talks more about LLCs and not about SEC rules. Interesting nevertheless.

@Bryan Hancock: My understanding is also that SEC has no jurisdiction of non-residents, but I want to confirm that it's really that simple. I'm not looking to market to a specific country, but yes I understand what you are saying about local regulations...

Jean

Hi @Conrad Metzenberg,

I've also bought some AZ tax liens out of my self directed IRA after reading the 16% solution and this is what I can tell from my very short experience so far:

- you'll need to do your due dilligence on the underlying properties, to make sure you're not buying liens on worthless land, there is a lot of that in AZ. But that's all explained in the book. The liens that remain after the auction (which you can buy from the counties all year) have a very high likelyhood to be on worthless land, so it takes even more time to sort through these.

- your first problem will be getting the tax liens: when bidding at auction, the interest rate routinely gets bid down to 10% or less, so it's actually very hard to get 16% liens. I would suggest trying more rural counties and those that do not have online auctions, for more luck. 

- and then your second problem is that you only make money while the lien is outstanding. For us, for the few liens we were able to pick up at 16%, most of them were redeemed within weeks, so we did all the hard work and only ended up making a few dollars, then when the liens are redeemed you can't get any more until the following year, so your money stops working for you!

So while it's a great investment, it's going to be very hard to have all your money making 16% all year... One of my friends swears about using an agency to do all the above work, but they take a big chunk of the profit too.

If anyone has suggestions to improve the above caveats, please chime in!

Jean

Hello,

does anyone have a mortgage broker to recommend that is licensed in AZ, NV and UT? I invest in these 3 states, and always have to juggle between different lenders and brokers because not all are licensed everywhere, so I would like to establish a long term relationship with someone who can broker in all 3 states.

Ideally someone who also has a relationship with United Wholesale Mortgage, as they have some potentially interesting mortgage products for me.

Thank you!

Jean