All Forum Posts by: Jim Sestito

@Account Closed  I am not close enough in MA to answer but anyone attending this meetup will certainly be able to chime in.

https://www.biggerpockets.com/forums/521/topics/378161-fall-river-ma-southcoast-rei-meetup

@Cheng Bin Zhang  I appreciate the encouragement / share.

I included my justification of moving when I sent the request to lender.  Quieter neighborhood, closer to work, many other legit reasons of why I am moving - besides the fact of saying "I want to move because I am an adult and house hacking / building a multi fam portfolio while doing so is awesome!"

Planning on using lunch break today to introduce myself to a few small local banks - will certainly keep the thread updated.

I should have mentioned that I am getting approvals from two lenders - both originators who will be selling my loan to Fred or Fan.  One of these lenders I used on my current two fam and also refinanced with them (technically 2 closings with them they seem to like me / our relationship) - they are not the ones who gave me the negative response but I am worried as both lenders operate very similar.

Thanks @Mike Cumbie @JD Martin I agree I didn't expect to run into issues this quick - I plan to keep shopping.

@Rick Santasiere Would a 'credit union' be able to do what you have described?  I have a good relationship with a small local company who I should contact.

Hi BP - and Happy Friday

I have lived in my two family for over two years and ready to make a move.  

Looking to house hack again but this time into a 3 or 4 family.

The first lender I am getting pre approved from ran the 'situation' (I do not see it as much of a situation) by his under writer and got the following response,

*****I don’t think this is going to work. If he wants to come off the deed of that 2 unit, or refinance that 2 unit into an investment property, we could do the 3 unit as an owner occupant******

It seems they would be suspicious why someone wants to live in a three family when they own a two and I am just looking to get the benefits of an owner occupied loan and not really live in the property.  I am 100% planning to move into this next property and have no intentions of committing mortgage fraud.

Am I out of loans after my first property!? I ask this with some sarcasm but would love to get the opinion of other investors who may be in similar situation.  

I am located in south shore Massachusetts smack dab between Boston and Providence.

Thanks in advance for the help and conversation.  

Jim

Corey,

While I have not done one of these I have done a little research on it. To summarize the way I am reading it you are looking at the same pros and cons of FHA - Pro's low-low money out of pocket -- Cons - mortgage insurance cutting into cash flow and often times these loans have strict appraisals who will not loan to a property that doesn't not meet their standards.

Also there looks to be income limits here - deff check to save time.

One thing I didn't see but is true for FHA is you have to occupy the property - if you do not plan to then thats a good Q to ask them.

This looks like it could be a great option in the right situation.

@Account Closed Full disclosure I have been involved with this scenario but I say go for it.  Good exposure, good practice.  If things get out of control - they do not like where its heading then pull it off and re list w another agent.

I beleive during showings they need to disclose they are the owner and agent.

Good luck

Thanks @Matthew Kreitzer -- spent an hour with a local attorney today.  I just wanted to have a little knowledge before walking in.  

@Shaun Reilly I feel like all the work I am doing today is CYA work.  Hard money looks like the avenue for this project.  Thank you again for the guidance.  I will try to update the thread as it progresses.

Congrats @Eric Dufault   -- going in for the test the 16th of this month - pumped as well! 

Massachusetts LLC TAX MA BOSTON

Hi Guys,

I have a property I am trying to acquire through a hard money loan.

The company - who I got off the biggerpockets hard money link RCN Capital - was very helpful but did mention I would need an LLC in place in order for them to rent to me.

Is this the norm as far as hard money goes? And I will search the BP forums for info on setting an LLC but does anyone have a quick and dirty rundown for Massachusetts?

Thank you