All Forum Posts by: Lorenzo Prieto

Hi Shera! Typical time frame I like to give is 30-45 days after close to give enough time for all of the paper work to be filed with the county correctly. This also gives time for the credit bureaus to update your new loan. If you have equity in the property you should be fine to move forward with the HELOC. I'll shoot over a DM in case you have any questions.

Some quick options that came to mind: 

1. Increase your HELOC. If there is equity in your primary residence you can go up to 90% LTV and might have enough funds to purchase the property cash and do the repairs. If you don't know how to calculate how much equity you have feel free to reach out, I'd be happy to help.

2. Your suggestion of financing half and putting cash down for the rest isn't a bad idea as long as it doesn't leave you completely cash poor. You could always do a cash out refinance after the repairs are done and pull your equity but would hate for something to come up and don't have the means to fix it because all of your money already went into the deal.

Feel free to reach out with any questions. 

Hey Daniel, as far as I'm aware there is not a waiting period for a HELOC to access the funds. In my experience as soon as the loan funds you are fully able to use the funds as necessary. Also, no the HELOC will not count against your DTI if it's not being used.

Hey Tyrone! I'll shoot you a DM I can help with this! 

Hey Eldon! So many different opportunities you can do with a HELOC but it really depends on you specific situation and what you want to do with it. The three main usages I've seen with HELOCS are: debt consolidation, home improvements, and to purchase investment properties.

Because you are a part of Bigger Pockets I would assume you are looking to invest in more real estate which is great! There is a lot of different ways to make money in RE but the best thing to do is pick a niche and a strategy. I would begin by educating yourself on the different methods of investing (fix and flip, LTR, STR, wholesale) pick one and learn how to analyze a deal. The worst thing to do is throw your money into something and not have a clue of what you are doing and lose money.

Hey Juan I've never personally done a land equity loan but if you are going to the bank for the loan they will need to pull credit either way if you decide to move forward with the application. They will review and verify all debts that are listed on your credit report and will most likely ask for documentation from you. For example, on a regular cash our refinance on a primary residence we will pull credit, check if the mortgage is showing on the credit report, and then request your latest mortgage statement. We do this for a few reasons but mainly to make sure you are current on your mortgage and not in default and that everything matches what is reporting on the credit report. Hope that helps. Feel free to reach out with any questions! 

Yeah so depending on what the new appraised value is that is what the lender can base their LTV% on. For example if the home appraises for 725k then you would have 122.5k in available equity (90% of 725k = 625,500 - 530k). Does that make sense? If not shoot me a DM and I'd be happy to elaborate a little more.

Hey Trenton, based off some quick calculations @ 90% LTV of 675k you would have another $77,500 of equity (after your all in 530k amount). I think it would make more sense to keep the lower interest rate of 2.875% on your primary loan and refi the HELOC up to 90% LTV that way you would have access to the additional 77.5k. If your ratios are in line you could purchase a new primary and at your projected 3200-3600 and it doesn't look like it will cash flow but it would cover the majority of the mortgage on the 1st and the HELOC payment.

Hey Edward! 

1. Unsure - But I'd be happy to do a little research and study the market with you. 

2. Yes. Are you planning on being the only borrower on the loan? 

3. Time in the market is better than timing the market. 

Feel free to reach out with any questions! 

Hey Virginia, it's awesome that you are searching and have decided to take action on your first house hack! It's a very powerful tool to get into real estate! I'd love to chat with you more and help you understand the in's and outs. I'll shoot you a DM.