All Forum Posts by: Matthew Phelps

Are there any investors in the Henderson TX market looking for their next property? I currently have a deal under assignment in Henderson. 3 bed 1 bath. Here is the link to pics of the property. https://drive.google.com/drive/folders/1xrnA7feTY1aIb4qfxeOR...

212 Raymond St. Henderson tx. $95k 3 bed 1 bath.

ARV 160-170k 1,447 sqft 13,194 sqft lot Nice spacious back yard with shed.

This would be an assignment of contract. As is condition. More pics upon request

Call or text me at 903 405 7393

@Andrew Postell

Regions Bank told me that. Again, they did say I can get 80% of the EQUITY...IF that amount doesn't exceed 50% of the homes total value (LTV)... then the loan officer gave me a link (that I posted above) that stated that information. So would you advise I speak with another lender? I was really liking Regions Banks terms (6 month intro period at .9% APR

I just got some unfortunate news I was unaware of even after this whole past year of research. LTV limitations (only in Texas 😖) state that the max LTV in a HELOC is limited to 50%.... "LTV Limitations

Like all home equity loans in Texas the maximum Combined Loan to Value (CLTV) is limited to 80%. In addition to the 80% CLTV, the maximum Loan to Value (LTV) is limited to 50%. The loan to values are determined by the home's appraised value or the Central Appraisal District. " - https://mortgagemark.com/home-loan-process/refinance/types-of-mortgage-refinances/texas-home-equity-cash-out-refinance-a6/home-equity-line-of-credit/

This means that even though I own my primary residence outright, I can only borrow up to %50 percent of the homes value in a HELOC. This put a huge dent in my investing budget plans with my HELOC. Anyone else heard of this in Texas ? Were you able to still use the money to invest successfully? Thanks

@Jason D. Yes the property is on one deed. So you are saying refinancing would be a better solution than a HELOC? That actually does sound like the better route.

Hello BP. I am reaching out because I am in a bit of an unusual situation and need help/advice. My brother and I share and own a house in Whitehouse, TX. It is actually a Duplex. We both have lived in the home the past few years. I live on one side of the duplex and he lives in the other. He is wanting to sell the house to get his own place. The house on tax documents with land comes out to $111k. So if we were at least able to get what it was worth via tax documents, it would be about $55k to each of us. I, on the other hand am not too excited to sell. I like the location and I have been able to save a lot of money since we own and I am not paying rent or mortgage. I was considering buying his half of the property from him so that he can go get his own place, and I could keep the house and rent out his side. His side does need a few repairs that would probably come out to about $10K. My question is: How should I go about financing in order to buy him out? Would a HELOC be the best route? Should I do a conventional loan? I don't have much capital to "put down" for a conventional loan. The plan would be to buy him out. Fix up his side, rent it out, then eventually rent my side out. And have the rent payments going towards the loan that was taken to buy him out. Any Ideas or recommendations? Thanks!

Also, have you considered painting the outside brick a different color. I recently saw a rehab in my area where someone painted the exterior brick white and it looked awesome.

The exterior and price is what is more than likely pushing people away. The inside/rehab doesn't look back at all bout the outside still feels dated. Like people have already mentioned there are little things you can do to help. Power wash that driveway and exterior of the house to get all the old grime off. Hire a better photographer. The goal is to have someone look at the house and feel like they are at home.

@Robert J Koch III

I am in the process of doing the same thing, except I am going to be trying to do a few fix and flips before buy and hold. I think it is a good idea as long as you understand the numbers up front and do your due diligence on whatever property you plan on obtaining. Find a real estate agent that knows your market to better help you understand if you are getting a good deal. Make sure you property projects to positive cash flow once the numbers are ran. Once you do get that positive cash flow property, hit the refinance button and pay off the HELOC, rinse and repeat. The method works from what I have seen. You just have to make sure you are getting a good deal and are prepared for any potential pit falls.

@Jason Crow

Very awesome to see how your plan has been panning out. I am in the process of getting a HELOC on my home as well in hopes to obtain my first fix and flip. I will look to a forclosure auction as well. If you have any more updates I would love to hear them. Thanks!

Howdy everyone. I am new to REI from the Whitehouse, Tyler area. I am looking to use a HELOC to purchase a property outright and do the BRRRR strategy. I am also interested in using the HELOC as a down payment on a turn-key property as long as the cash flow makes sense. Currently reading Brandon Turners book on REI properties and working to build credit back up. I am interested in networking with more investors in the area for advice on my first investment. Thanks!