All Forum Posts by: Julia Puig Jordan

i'd say: lender question, talk to your trusted professional. Usually it is 20 to 25% down. Question is: will they give you the funds as a rookie? Generally it is advised to start small, build trust with lenders and then go bigger, hope this helps 

Hi, you take over the property with tenants in place. Then you decide: renovate all at once? Terminate all three agreements. This way you can do a quick , efficient fix up. Or: terminate one by one, fix up each, raise rent. Often the termination of all three at once makes more sense if you change rent price drastically. Poor and rich next to each other might not work out well same time

say another one came in earlier or that they met the criteria in a better way than them. Or: we already started moving forward with a different applicant. 

Hello Karen,

a cash out refi should not be an issue. As much as i know Texas does allow heloc only on owner occupied homes to max 50% of value, check with your preferred lender in your state. 

Cashing out in LLC you'll pay a little more interest, my lender mentioned around 1 point higher than a non LLC.

This will allow you to wash rinse repeat with the Brrrr method to accumulate properties. 

I personally do not recommend the big banks but more your smaller, local banks or even better lenders as they only do lending. Go by referral of satisfied clients for example you can ask in this forum for your state.

I personally would do a cash out refi, buy a cosmetic fixer upper in cash, fix up in cash, put tenant in the home, then do a cash out refi again. 

That's what i do, i am on property 10 now,

best of luck to you 

Hello Karen,

a cash out refi should not be an issue. As much as i know Texas does allow heloc only on owner occupied homes to max 50% of value, check with your preferred lender in your state. 

Cashing out in LLC you'll pay a little more interest, my lender mentioned around 1 point higher than a non LLC.

This will allow you to wash rinse repeat with the Brrrr method to accumulate properties. 

I personally do not recommend the big banks but more your smaller, local banks or even better lenders as they only do lending. Go by referral of satisfied clients for example you can ask in this forum for your state.

I personally would do a cash out refi, buy a cosmetic fixer upper in cash, fix up in cash, put tenant in the home, then do a cash out refi again. 

That's what i do, i am on property 10 now,

best of luck to you 

thank you Jarel, i appreciate your input. I decided to go ahead and rent the property and put a mortgage on it once my credit score recovered from all the inquiries. 

Have a great week,

Julia

thanbk you Bryan, i had a professional come out and look at the situation, not perfect up to code but would not cause a problem, in case it would it is an easy fix. I wrote up my sellers DC and think i am set. I had some interest already after listing it yesterday for lease and rent.  thank you! Julia

Thank you everyone, i appreciate all your knowledge greatly.

I have enough expenses for the property to not need an 1031. I will look into better ways to finance and meet with my local REIA.

I assume i will move forward selling it regular and buy something newer with better appreciation. Our market here is wiped empty, high demand and mine is a cheap 5 bedroom, it should move quickly. It's beautiful as well with a large lot, large screened in porch, great for a family, even has a mom in law garage apartment. 

By the way, we build screened in porch, wire fencing (no privacy fence to back , there is a gully, nice view) and garage apartment and never pulled the permits, can i just disclose and move on to selling? I do not want to wake sleeping dogs (no issues since 6 years).

Thank you! 

Thank you so much Brian,

i really appreciate your advice and time.

I am in the process of buying house number 7 right now. Except my own they are all rented out, i have 4 mortgages right now. My plan was exactly like you say, cash those out with a refi loan, take the money, fix up (only cosmetic, i have a good day job) , rinse repeat. Basically a Brrrr. Just that i am my own lender with a regular mortgage. 

After my divorce i still build back up my credit score as well as my tax returns. I made a very good amount both last returns, but all the depreciation and some expenses ( i got a great deal on house six  as the AC was dead, so i bought it and replaced all right away) and all my income is through selfemployment. Means the lender takes out a 30% as i could make my numbers up (who does that, more likely it;'s other way around, or, business involves good part in cash) . 

So i am in a depth to income struggle right now, house seven i needed to pay dow 50%!! and switch to 30 year...i only do 15 year usually and 25% out of pocket. I was planning on 3 to 4 more properties this year and now i can do only 2... also with all the financing my score is at 670 now...no shame haha... i pay everything on time always but i am just here in US 6 years and have too little credit card history etc and the divorce was not funny.

My goal is 50 single family homes. Appreciation is 7 to 12% on all my properties and i like to use the low interest rate of course.

I think rent to own or owner financing is not efficient to me. I wanted to look into it though. I see a lot of folks taking adventage with this model and do not like to make business that way.

So far depreciation and expenses were same important than the actual income and appreciation. And like you said, that only works when holding them. 

This one is from 1978 and though that's my birth  year the houses pipes are old and i worry when it starts falling apart. The roof rafters need to be done next 5 years and the Laminate flooring is just good enough to sell as is, but after the next tenant i will probably face a replacement. I tent to sell it. My brokerage let's me do my own deals for a 50$ fee. 

I also prefer the modern floor plans from houses less than 15 years old. I believe they appreciate stronger in my market. I will not need a 1031 exchange as my CPA will put almost 100% building expenses against it. We lived there years ago and my ex did mot keep any documentation about expenses. So we come up with the numbers. 

thank you so much Bryan!!! Awesome knowledge! I will dig deeper into this topic and probably start at my title companies here to get the basics figured out! Have a great week!