All Forum Posts by: Lee Ribeiro

@Whitney Hutten thank you! 

Great give a man a fish / teach a man to fish moment here. Hopefully we’ll be fishing in the future together someday! :)

@Nicholas Bohm Curious if you ever got started here and where?

@Whitney Hutten I love this advice of these trends to look at to start comparing areas and neighborhoods to. Where do you tend to source this data? And by what scope (zip code? Greater city region?) Would love to start mapping out some areas I'd ideally want to start doing this in as well.

@Jeff Burdick

Yeah that seemed very low... even if you were to look at some of the roughest parts of the city (ie Englewood) you’d be hard pressed to find $20k properties and below.

Jeff - I'm curious as to what you're thoughts are on the amount of cash (minimum) you should have on hand to comfortably BRRRR on the Northern side of Cook County (MCkinley/Bridgeport and North)?

Incredibly helpful! Thank you much Andrew - it's contributors like you who slowly help knock down the scary walls of ignorance when attempting to get into this industry.

Thanks again!

@Andrew Postell Thank you for the thorough response here! Much appreciated. To follow up:

"Getting mortgage under my name to get around me being on title less than 6 months":

so it seems here that at this point with the situation at hand, there isn't going to be a way to do a traditional cash out refinance on the property under my name given it's only been about a month (even if we keep my father on the title). The only option here I assume would be to put my father AND myself on the new loan as well as keep him on the title? (Doesn't seem like the route I would want to go anyway)

"I plan on living in the front unit"

This alternative route seems like I would have to go back, take my name off of the deed, and instead of doing a cash out refinance, this would just be a straight up purchase transaction. I understand the no money down part, but it seems like we would incur a lot more closing costs and taxes going this route?

US Bank 20 year fixed rate just over 5% 

This seems with where we are at now, it would be the least path of resistance option to take on. I guess my question here is, is there any difference down the line (I plan on buying more properties in the future) with having a Portfolio loan vs a traditional loan when applying for new credit?

2 Units on Property

One unit is a 2BR/1BA and the other unit is a 1BR/1BA. They do share a wall as well as they have their own electrical meters. This is a house(not mobile home). This was purchased in foreclosure back in 2008 I believe as is and has been functioning as a 2 unit (possibly referred to as an in-law unit?).

Both units have two entrances and individual kitchens. I do believe that this property is technically zoned as a SFR so I'm not sure what further implications this has on the appraisal process...?

Very eager to hearing your response on the topic! This is definitely an interesting situation for my first stint at the REI world and everything I learn is invaluable.

Hi BP community!

Have an interesting situation on my hands and I think I know which direction to take, but I'd love the opinions and thoughts of the community to help guide my novice self!

Situation:

I am buying a property from my father. The property is paid off in full and has no mortgage currently on it. Instead of doing a purchase transaction, what we did was add my name to the title via a quit claim deed, and we plan on doing a cash-out refinance to pay out my father for it. I estimate the property to be around $220K in value, and want to pay my father out about $160K for it.

Caveats:

• It is zoned as a single family residence, but there is technically 2 units (Front and Back. Maybe considered an in-law unit?) and one unit is currently rented out. I plan on living in the front unit and househacking the rear unit. Not sure how this will affect the appraisal process?
• I plan to get the new mortgage under my name, but keep my father on the title for the time being so there is no mess around me only being on the title for less than 6 months (We just processed the Quit Claim Deed last month, April 2018).

Question:

After talking to a couple different lenders and explaining my situation, I am between two thoughts.

1) Go with a traditional cash out refinance. Looking at a fixed 30year rate of about 4.5%-4.75%. and monthly payments of ~$900 without taxes and insurance. Closing costs near $5K

2) The bank my father uses for a lot of his properties (US Bank) is pushing me to do a Portfolio loan for this property since it will be a lot easier to accomplish without complications since they would own the loan and not have to jump through Fannie May/Freddie Mac hoops. Their offer is to do a 20 year fixed rate at just over a 5% Rate. The thing is, they wouldn't charge a closing cost and take care of all appraisal/title fees etc..

Ideally, my goal is to cash flow as much as I can monthly so Traditional Cash Out Refi seems like the better way to do that. But I fear that with the situation we are in, it may make more sense to go with the Portfolio Loan so that we don't run into road bumps around the Quit Claim deed transfer and zoning issues (SFR used technically as duplex). I'd love to hear any thoughts or advice as I make a decision on this process.

Thanks to anyone who takes the time to read through!

Hi BP community! 

Have an interesting situation on my hands and I think I know which direction to take, but I'd love the opinions and thoughts of the community to help guide my novice self!

Situation:

I am buying a property from my father. The property is paid off in full and has no mortgage currently on it. Instead of doing a purchase transaction, what we did was add my name to the title via a quit claim deed, and we plan on doing a cash-out refinance to pay out my father for it. I estimate the property to be around $220K in value, and want to pay my father out about $160K for it.

Caveats:

• It is zoned as a single family residence, but there is technically 2 units (Front and Back. Maybe considered an in-law unit?) and one unit is currently rented out. I plan on living in the front unit and househacking the rear unit. Not sure how this will affect the appraisal process?
• I plan to get the new mortgage under my name, but keep my father on the title for the time being so there is no mess around me only being on the title for less than 6 months (We just processed the Quit Claim Deed last month, April 2018).

Question:

After talking to a couple different lenders and explaining my situation, I am between two thoughts.

1) Go with a traditional cash out refinance. Looking at a fixed 30year rate of about 4.5%-4.75%. and monthly payments of ~$900 without taxes and insurance. Closing costs near $5K

2) The bank my father uses for a lot of his properties (US Bank) is pushing me to do a Portfolio loan for this property since it will be a lot easier to accomplish without complications since they would own the loan and not have to jump through Fannie May/Freddie Mac hoops. Their offer is to do a 20 year fixed rate at just over a 5% Rate. The thing is, they wouldn't charge a closing cost and take care of all appraisal/title fees etc..

Ideally, my goal is to cash flow as much as I can monthly so Traditional Cash Out Refi seems like the better way to do that. But I fear that with the situation we are in, it may make more sense to go with the Portfolio Loan so that we don't run into road bumps around the Quit Claim deed transfer and zoning issues (SFR used technically as duplex). I'd love to hear any thoughts or advice as I make a decision on this process.

Thanks to anyone who takes the time to read through!

Hi Bigger Pockets Family!

This is my first post on here, and am in a bit of a unique situation. I am planning to purchase a property that my father currently owns. He had formerly purchased the property in 2011 in a foreclosure, it is rehabbed and currently rented out. The property is free and clear of any mortgage.

What we want to do on a high level is add myself on to the title via a quit claim deed, then refinance the property and cash that out to pay my father for it, I would take on the new refinance morgage, ultimately then take his name off the title. It seems that this route would be the easiest and quickest way to make the transaction while avoiding heavy taxes for a property exchange.

As fairly new to this process and the real estate world in general, I am curious to see if anyone else has done something like this and what we need to be aware of? Or if there is a better way to accomplish this family transaction? I'll definitely consult legal advice before going through the process, but was curious to hear what others have to say.

Any insight would be much appreciated!

Newer to investing here in Chicago - Can you provide an example of what kind of benefit this provides to the buyer?

Thanks!