All Forum Posts by: Nitin John Abraham

@Stephen Akindona
 - yes im aware of the delayed financing exception. i was trying to get 75% of the appraised value and not the purchase + rehab. That was the issue.

Thank you!

@Cody Campbell I bought two houses for cash, rehabbed them and took them to the bank. They said all they could do was the purchase plus rehab Costs not at the new appraised value.

I'm sure I'm missing something here!

@Cody Campbell how are you cashing out at 75/80% ARV without seasoning for 6 months?

All bank and credit unions I deal with cite the Fannie/Freddie regulations that requires seasoning.

@Eric Martin did you not have to wait 6 months seasoning period to get 80% of the appraised value?

As I understand by Fannie Mae Rules you have to wait 6 months if you want to get the 75/80% of ARV.

If you Refi sooner you can only get the 75/80% value of the purchase price plus closing costs etc and not ARV.

How did you get past this?

I'm trying to do this with a home of mine in Kansas City, MO that I just finished remodeling.

Thanks!

@Ricardo A Perez you can also depreciate property using cost segregation for the property. That allows you to depreciate the home and it's elements at different rates.

My experience is that this is benifical only if your homes are 100k or more in value.

I am in the similar situation as i'm trying to cash out refi however per the Fannie Mae Rules i don't see a way to recoup the money spent on the  remodel. i can only recoup the initial investment which means i leave my remodel costs in the property.

see below from Fannie Mae - 

The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value).

@Noah P Bonds thanks, not looking for hard money loans. Looking for cheaper long term options.

Soh, i do have LLC's set up for my properties and properties are grouped into LLC's. Any specific type of commercial loan that would apply to residential real estate in LLC's?

Thank you, 

@Lee Ripma thanks for the advice, I will be a citizen in about 6 months so the other option is to wait to expand my portfolio ...