All Forum Posts by: Manuel Torreira

Chris, Thanks for your reply. I am thinking this might be the way to go!

I currently have a $55,000 condo under contract (1bed/1 bath, 754 sq. ft) that was initially priced at $65,000. It will require about 3-5k in renovations and the ARV will be about $80,000. However, since a single entity owns more than 75% of the units, I am unable to secure traditional financing on this condo since it is non-warrantable. I believe at some point they converted 75% of the units into apartments and the remaining 25% are condos.

I've been doing some research on Hard Money Lenders using the Bigger Pockets Network tool, however, it doesn't seem like anybody wants to lend on anything less than $75,000. I have excellent credit (762 score), great income, and I'm able to put down a large down payment (20-30%).

Any recommendations would be greatly appreciated.

Thanks!

Thank you for posting this! This is a great resource!

@Gary Bull

I have my 401(k) with Principal and I spoke to them directly. The entire process was done online and it only takes a couple minutes. I encourage you to reach out to whoever handles your 401(k) account and ask them about their loan process and requirements. You'll be surprised at how simple and pain-free this can be! Good luck!

@Jackie Comitino

Taking a loan against your 401(k) is definitely a great resource as long as you run the numbers and it all works out! Good luck! on your future deals!

@Jon Reed

Thanks for your input! Meeting with a real estate attorney doesn't sound like a bad idea!

I bought my first rental condo a year ago and I am trying to do a cash-out refinance on my unit. However, the HOA has an open lawsuit against them due to a fire that took place in another building two years ago and a homeowner is suing the association for it. Therefore, traditional banks will not lend on this property or provide any refinancing options. I have been told by the property manager that "from a legal standpoint the only information that can be provided is that a fire took place, and there is an open claim for it." They have began making the repairs to the building but that's about as much information as I have been given from the HOA.

As an owner of one of the units, am I entitled to a copy of the lawsuit?

What are my options?

Is my only option to wait until the lawsuit is finalized before I can a) buy another unit in this property or b) refinance the one I already own?

Should I be looking for other methods of financing that don't involve traditional banks?

@Account Closed 

The 401(k) loan application took about 20 minutes and the funds were available the next day. We were able to close in a little under 3 weeks! Overall, this was a great way to purchase my first condo investment.

Thanks for sharing! I bought my first condo investment property a year ago by taking a loan against my 401(k). I was able to use those funds as a down payment, and it was quick and easy! I am now looking to find my second condo investment in the near future.