All Forum Posts by: Matt Devincenzo

@Robert Ellis are you going to answer @James Wise questions regarding identity?

I know @Rene Hosman and @Scott Trench have expressed that transparency and addressing concerns are huge on the platform. If you have a stage name for your SM presence etc, I'm sure a simple explanation would clear this up.

A new address on the property won't do anything for what you'd like to accomplish. The loan is tied to the legal description not the address..."Lot 1 of Map 123"...when you filed the new survey the loan didn't get stripped or 'lost' from that description, it just ended up attached to "Parcels 1-3 of Map 456" by way of the 'chain of title'. Even though there's no deed showing the loan on the new parcels, the chronology and legal theory ties it together. To accomplish what you want there's three steps that may happen separately or it may need to be concurrent:

1) Reach out to your lender and ask them about their requirements to complete a partial release or reconveyance? Essentially what do they need in order to let you leave the loan on Parcel 1 and remove it from Parcels 2 and 3? It's a more common ask in construction and commercial financing, but even conventional loans have guidance on the request, so you just need to ask and get to the correct person to answer your question. 

2) Talk to a lender/bank about the terms they would lend on the vacant or ax barn property. Make sure to ask your current lender if they'd consider it as well.
3) Get all three parcel appraised to establish a value. Do not do this before you talk with your current lender and your potential lender...they may require their own appraiser, they may have specific requirements, or if your current lender is local and willing to do a new loan on the other parcels they may work with you on value without a formal appraisal.

Final thought, if for some reason there is difficulty getting the above accomplished, you still have an option. Just go and get a refi of the existing loan, but when you get the appraisal and the loan approval etc. make sure that everything is only for the parcel with the restaurant. The only thing you want to make sure includes all three parcels is the reconveyance/release since it was tied to the entire property you want that completely released. Then you'll have one encumbered parcel, and two unencumbered parcels. 

If you feel it is needed, or it just makes you feel better then go ahead and do it...it's your investment you're protecting. That said it is a challenge to do at the very end, especially if there are any items requiring more substantial rework. Typically on larger sites the client/GC may hire an owner rep or a construction manager that is there as a check/balance to what is billed vs. complete vs. quality of work etc...the key is that those inspections happen along the way so you never get billed out further than the cost of any rework. So just be prepared that if there's too much to fix, you may need to pay for some of it to be done twice by getting a new contractor in to fix and correct things. 

This could be one of the few scenarios where pursuing Adverse Possession is the best course of action. In the original context of AP going way back to English law, this was essentially the scenario they were attempting to resolve. Property with no clear ownership should be allowed to be used, and eventually owned, by someone willing to bring it into use. I'd research a bit more and then do three specific things:

1) Talk to your atty about pursuing AP, and then based on his advice do the below

2) Offer the old owner $500 to sign a new QC deed to me. This will prevent them changing their mind later, and may reduce the ownership timeframe to file AP.

3) Consider recording the QC deed (atty advice on this) and then pay the back taxes and put my mailing info for future bills.

Once you've done the above I'd rent the home, pay taxes etc for the next how ever many years and then file you AP claim when the time is right. Hopefully despite being vacant the home isn't destroyed and you can get it rent ready for minimal expense. The concern with AP is you have to risk any money you put out on a property you don't personally own. So weigh that risk/reward and decide if its worth it to you. 

What's an ETJ?

The answer to this is going to be hyper local. Some areas may be inclined to support it others may not. Technically you can get anything rezoned, it just takes time, money and political support. So how much of each of those three you have dictates your chances of success. 

I've never heard that. Did the first company state why? I'd reach out to a broker and see what they can come up with.

Hire a local and experienced attorney. 

I went through a Broker and used the lender they selected....I searched on my own and with several brokers who didn't have any HELOC lender's for investment properties in their contact lists. So when I found someone who was able to support what I needed I accepted. All the referrals I had from years ago had tightened up and weren't lending on investments...some may be starting to come back now.

My lender didn't have any restrictions on access after the initial draw, but did have restrictions on transfers for the first 6 months. I could only wire to myself and it had to be a faxed/email wire request not online. I only realized that the first time I tried accessing funds...I had to send to my other account then from there send them to the title company. It was a bit of a pain, but I understand they're trying to reduce fraud etc and there's likely a specific scam/fraud they've seen in the past. 

You shouldn't be. Has a lender actually told you your DTI is bad or trending higher? Or are you just assuming this based on your own analysis?

Assuming your rentals are all CF positive and are shown on tax returns your DTI should be improving not going down. The math on DTI for conventional loans is:

Rental 1: $1K/mo - rental 1 expenses (PITI and other costs)= $200/mo

Rental 2: $1K/mo - rental 2 expenses = $200/mo
W2: $11K/mo

Income = $11.4/mo

Other debts (not rental loans) $3K/mo

DTI = $3K/$11.4K = 26%

So if you truly have positive CF then you don't have a DTI issue due to these rentals.

I have a HELOC on an investment duplex, but not from Better. I closed July of 2024, 12% and a $25K initial draw requirement...fees were low under 1%...maybe even 0.5% I don't recall exactly. If you find a HELOC for an investment property expect it to come at a fairly high rate because there aren't many out there right now. It's a short term product, so just be sure to use it for short term and not get stuck holding a high balance for very long. I repaid the initial draw balance the next day, so the interest paid was like $50 or something...that's a price I was willing to pay to have access to equity when I need it.