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All Forum Posts by: Jesse Weaver

Jesse Weaver has started 5 posts and replied 12 times.

Post: HELOC Lender in Texas

Jesse WeaverPosted
  • Mc Kinney, TX
  • Posts 12
  • Votes 2

Hi Kerry, you may be able to get a HELOC on your home loan if you didn't do a cash out refinance previously on your home or if your 1st mortgage isn't considered a 50(a)(6) loan. From what I've read, getting to more than 4 properties is just a matter of finding a good list of investor friendly lenders that don't typically resale your loan to Fannie/Freddie. I'm definitely not there yet myself, but I'm sure there are people on bigger pockets or in your local market/REIA that could point you to these lenders.

If you have enough equity in your investment properties, you could also refinance those properties to get cash out. However, it definitely wouldn't be a HELOC, but rather more of a traditional mortgage with amortizing principal and interest.

Post: HELOC Lender in Texas

Jesse WeaverPosted
  • Mc Kinney, TX
  • Posts 12
  • Votes 2

Hi Aaron, I actually was to find several banks that offered some form of HELOC option (Frost Bank, Chase, Bank of America and Citi). However, since my home at the original close was paid cash (with an undocumented loan from a family member), when I refinanced my home after the seasoning period, the only way I could do it was to get cash out to payback my family member.

That cash out transaction (even though it was a conventional first mortgage) fell under some Texas Lending Law 50(a)(6), which hosed me and my ability to create a revolving line of credit even though the first mortgage was fully drawn and there was plenty of room for a second mortgage at 80%LTV.

Ultimately, I had to do another cashout refinance at 80% LTV. Thankfully, I had multiple non-consumer uses of the capital to offset the cash flow increase on my primary residence, so it worked out (even though I was completely concerned I'd be stuck with out an ability to take advantage of my home's equity)

One big lesson I've learned in this process with my primary residence, is the laws totally work for the lenders and against the consumer. Unless you're on a Dave Path freedom on your home that is calling you to be completely debt free in all aspects of your life, never pay cash. With the seasoning period and the inability to subsequently unlock equity through a HELOC, the cash at close option (assuming there isn't a hard money lender there with you) creates way too many restrictions on the back end.

Post: HELOC Lender in Texas

Jesse WeaverPosted
  • Mc Kinney, TX
  • Posts 12
  • Votes 2
I have a first mortgage on my house and I'm looking to pull money out with a second mortgage through a HELOC to buy property. Does anyone know of a good lender that provides HELOC's without a principle pay down requirement prior to the loan maturity?

Thank you, Bill!

Yuk.  Thank you both for the responses.  I was clearly hoping that there was a solution that was at least in between 'all or nothing'.  Really appreciate it.

I have a situation where I'll be selling a property that has a greater value than I'll be able to replace it with in smaller properties.  It's my understanding that a portion of my gain that I'm able to reinvest within the 1031 Exchange rules will be qualified for tax deferral purposes.  However, I'm unsure as to how to estimate what that looks like, so I've provided a completely hypothetical example below and hope this amazing community would have some insights into what the tax liability on this example would look like.  As always, I really appreciate your help!  

Example:

- Example: $50K gain after transaction expenses are paid ($25K Recapture and $25K capital gain)

- Disposed Property: Net sold value of $300K (after transaction expenses)

- Originally Purchased for $275K

- Depreciated book value of $250K

- Acquired Property: Purchase price of $200K

- What would the estimated tax liability be on this transaction assuming an ordinary income tax rate of 25% and capital gains tax rate of 15% if using a 1031 Exchange?

- What would the estimated tax liability be if the 1031 Exchange was not used but assuming the same tax rates as above?

Thank you, Aaron and Jonathan.  Really appreciate your feedback.

I have a place in Nashville, Tennessee with a 2nd mortgage that I need to refinance this year. I've had trouble finding a lender that will refinance the second at an 80% LTV since I no longer live in it and it's used for rental. Does anyone have a good reference for lenders that would potentially take on this deal? Thank you!

Post: New to the Game and Energized About LT Prospects

Jesse WeaverPosted
  • Mc Kinney, TX
  • Posts 12
  • Votes 2

Thank you, Steve and Mindy. Super helpful guidance on the resources and alert settings. My primary strategy now is buy-and-hold but I'm really trying to apply the BRRRR lens to the process by buying distressed properties, renovating them and renting them out to help out my returns.

Mistakes made in the past are vast!  The primary one was just not doing the diligence on the property and sticking to my numbers.  In order to make this work, I've read it's a real numbers game, so I'm trying to find good ways to get ample deal flow to look at as many opportunities as possible. 

I'm also in need of building a team, which I'd expect to include general contractors, lenders (focused on investor terms), property managers, closing attorneys, home inspectors, and wholesaler/agent.  I'd love to hear if anyone has any recommendations for any of these in the DFW area.

Thanks again. Jesse

Post: New to the Game and Energized About LT Prospects

Jesse WeaverPosted
  • Mc Kinney, TX
  • Posts 12
  • Votes 2

Hello BP Community, 

I'm new to 'actively' investing in real estate and looking to soak up as much as I can from the incredible knowledge base of the BP community.  

I stumbled into real estate investing out of college (a long time ago now :) in Nashville when you couldn't go wrong and made some big mistakes early on that turned me off to the idea for over 10 years.  However, I've since moved to Dallas and am now convinced that in order to build long term wealth a focused plan towards real estate is the way to go.  I've found vicariously through this Blog, friends in the 'Game', reading and the BP Podcast that with tenacity there is definitely something here.  

I've got a ton to learn and hopefully, with time and experience, will have a ton to offer to the community.  I really appreciate all of the contributors and look forward to learning more and breaking the seal on my first truly diligenced deal.

Thanks again for all you contributions and please don't hesitate to count me in on your list of colleagues!  Jesse