All Forum Posts by: Joseph Escamilla

Hey Preston,

For an FHA loan the lender is definitely going to require you to be an owner occupant. If you are planning on keeping it as an investment property I would proceed with caution as the FHA is very strict when it comes to occupancy requirements.

On the other hand, if you keep it as a primary for a year and then move out and keep it as an investment property afterwards, then you should be ok without having to refi out of the FHA loan.

If I were you I would ask the seller if they can authorize you to speak to the lender directly to ask them 2 things:

1) does the the fact that the seller already lived in the property for a year satisfy the primary occupancy requirement? (my guess is they will say no but doesn't hurt to ask!)

2) Have them verbally confirm that the mortgage is assumable and ask to see the original note that states it is assumable. 

Goodluck! 

Joe

Hey everyone I am looking to start a new Investor / Real Estate Professionals meetup in the greater Charleston SC area. I have scoured the internet and can't seem to find one that's currently meeting so I think there may be a need for it! (if you know of one please let me know) 

My vision is for it to be a place where Real Estate Professionals & Investors of all experience levels can network, learn, and build relationships. No sales pitches or membership fees. Just like-minded individuals looking to grow their networks and share their experiences.

Disregard the date and time of "the event" just putting a feeler out there to see if anyone might be interested!

Starting a Facebook group as well feel free to join https://www.facebook.com/groups/949218166172397

Thanks 

Joe

 Hey Chris I was unaware of this - thank you for this information that helps a lot 

My business partner and I are raising money from friends/family for our next Real Estate Project. For background we will probably receive funds from 15-20 people and roughly $150k-$250k.  Many people have expressed interest so now we are trying to figure out all the legal paperwork. 

The first item we would need help with would be drawing up contracts/agreements to add people as passive investors in exchange for their funds to invest. We currently have an LLC set up but we are being advised by a friend that for tax/liability purposes we should maybe collect the money through a corporation that owns the LLC and then have the LLC buy the property?? To get even crazier he said on top of that to maybe have a management company own the corporation? As you can tell we are confused where to start with this and want to make sure everyone is protected, and we are doing it the right way.

The second item we may need help with is filing with the SEC as a syndication. We believe we fall under regulation D section 506(b) for what we are looking to do since many of the investors will be non-accredited and we are not advertising which is allowable under that section.

We have had two attorneys tell us its "above their paygrade" which is not something you want to hear from an already expensive attorney LOL. We are being told we need a corporate attorney. 

Does anyone have any experience with this or could point us in the right direction? Is this going to cost us an arm and a leg and should we be going about it a different way? Any help is appreciated !! 

Thank you 

Joe 

Hey Sophia - New law says that after April 1st 2023 a Conventional Lender must wait for an existing mortgage to be seasoned for 12 months before doing a CASH-OUT refinance transaction. If you are doing a regular (limited cash-out) refinance then you can pretty much at any time.

A way around this is sometimes local banks / credit unions are "portfolio lenders" or in other words keep their loans on their own balance sheet which means they have their own guidelines and may be able to do a cash-out sooner than the 12 months. Any lender that does Fannie Mae / Freddie Mac loans will have to abide by the guidelines in the first paragraph.

I hope this helps !

Joe

Hey Gerald, the short answer is yes. Most Conventional/FHA Lenders will allow you to borrow from a pension fund or other retirement as a downpayment. There are a few things you should keep in mind:

1) Find out from your Pension plan if there are any taxes, penalties, or garnishments that will come along with obtaining the loan.

2) Find out from your lender if this will affect your debt-to-income ratios and thus lower your purchasing power. 

If you are looking to purchase a property well below your purchasing power, then it most likely wont affect things. If you are looking to purchase a property at or close to your purchasing power, then this pension loan may affect your debt-to-income ratio in a way that you no longer qualify for that purchase price 

I know some lenders will NOT add the retirement loan as a liability against your debt-to-income ratio as long as the remaining balance in the retirement account covers the loan you just took out. For example if your pension loan is for $30k and you have $31k balance remaining in your pension fund, then your debt-to-income ratio will not be affected (every lender is different so again double check on this) 

3) Lastly, before you pull any money out from your account, ask your Lender what documentation is needed to prove this money came from your pension. You will most likely need some sort of confirmation document from the pension plan (not a screenshot or email) and a corresponding bank statement showing the deposit into your account.

I hope this helps and reach out to me if you have any more questions ! 

Joe  

Anyone know of a lender that does HELOCs on 3 Unit investment properties? Preferably 70% LTV or higher

Thank you ! 

Hi Grace - Looks like I could help with that as long as its a single family home. Downpayment would need to be roughly 25%-30% . Let me know if I can be of any assistance.

-Joe