All Forum Posts by: Marco G.

@Eric James

Yes, up and down. I agree. To be more explicit, my point is that there is always a sentiment in a rising market that we are at the “peak”. That sentiment, or concern, about Dallas has existed at least since 2015. I myself bought in 2015 and was worried that I had bought at the peak. The particular properties I purchased have nearly doubled since then. And it’s not an idle belief or what Zillow tells me, I’m taking about comps from the same block of the same properties. Has that been true throughout Dallas? No. Real estate is hyper local (which I’m sure you know). So in my opinion data points like the 4% decline you cite have limited value because it’s too big of a data pool.

@Brandy Stanford

Talk to a few lawyers. Consultations should be free and it doesn’t have to be expensive. These are basically forms but there is nuance to it. It won’t cost you much, don’t be afraid.

@Nathan G.

Dallas peaked in 2015. And 2016. Also in 2017. But don’t forget 2018. And then there was 2019. But wait, what about 2020? No, it’s 2021!

@Sarp Ka

I’ve done three at the same time when buying a package of properties. Use one lender.

@Joe Splitrock

If he has a good faith belief that he will be able to perform by the closing date then I would disagree. The contingency is a buyer protection.

@Thomas J Mele

I've purchased three investment properties using HELOC funds as down payment exclusively (2015, agency debt) and just bought a fourth (jumbo) that will be my primary where the down payment was from cash out proceeds on my current primary.

The investments were with aimloan.com. Fourth a local credit union.

It’s not mortgage fraud. I don’t know if the rules changed since 2015. The jumbo is a local bank keeping it on their own books so they make their own rules but they used Fannie guidelines as far as I could tell/remember, but I could be wrong about that.

@John Duston

Candid and thoughtful advice.

@Theresa Harris

Point being, be transparent about it with seller and lender, but it can be and is being done. Would never do it without informing seller and lender.

@Theresa Harris

He can make an offer contingent on the refi proceeds. I just closed a deal on these terms.

@Dana De Andres

Also, unsolicited tax tip: put the proceeds in a separate account for ease of tax calculation. You’ll have to prorate your interest deduction.

Example: current loan balance $100k. Cash out refi for $300k. Place the $200k that will become downpayment in separate account. Come tax time, you can deduct the interest on $100k on what is now a rental. And the interest on the $200k will be deducted as primary home mortgage interest subject to the maximum loan balance caps.

Talk to your tax person. The point here is just to segregate the proceeds. The calculation is more complex especially when you don’t immediately use the proceeds while you continue to make payments and incur interest expense.