All Forum Posts by: Matthew Wolk

Hello,

My brother and I recently purchased a duplex that was going to serve as his primary residence. Because of this, we applied for a "primary residence" loan. Since we bought the property, our dad became sick and my brother will now be living at home with him instead of moving into the new duplex. What are the laws around dealing with this in regards to the one year occupancy requirement on our mortgage?

Thanks for any help.

Hello and thanks in advance these forums have been a big help. My brother went through a divorce and the ex wife got the house. Shes been ordered to pay the mortgage and refi into her name by 2032. How can he get himself off of the mortgage before then? The reason hes worried about it is the mortgage is 3 months behind and hes trying to repair his credit. It could possibly end up being foreclosed.  This is wording from the order:

Defendant shall sign a general warranty deed conveying his interest to Plaintiff. That Plaintiff shall be solely responsible for the mortgage on the residence and shall hold Defendant harmless and indemnify Defendant for the payment of the mortgage. Plaintiff shall have until December 31, 2032 to refinance the mortgage on the martial residence to have Defendant’s name removed.

Hi guys! Should I start an LLC before or after I've already gotten a deal? And if after, what would be the process of transferring the property from my name into the company name be? Any tips or advice welcome! Thank you!

I keep on hearing from investors that "I'm waiting for interest rates to go down" or I hear "I need rates to go down for the numbers to make sense". Maybe these investors are saying this because they just got into investing in the past decade where the rates were basically zero or close to it. The past decade of interest rates on a 30 year fix mortgage has never happened before 2008. In the 70s and 80 they were 8, 9, 10, 11, 12, even 18 percent. Now do I think they will continue to reach those levels I don't know I'm not Jerome Powell or the chairman of Chase or BoA. One thing I will say if you are waiting for the interest rates to back down to 2, 3 percent, you might be waiting a long time. All I am saying, is if you are one of those investors that say "I'm waiting for interest rates to go back", you probably need a reality check and do some digging into the history of interest rates. And ask yourself, were we just really lucky in the past decade to be able to lock in a mortgage at 3%. Start to look at the 30 year fixed mortgage rates history graph.

 The issue you are going to have is with your income.  If you only opened your real estate business in August of 2021, that is not long enough to use that income to qualify.  Was your W2 job also in real estate (same line of work).  I will shoot you a PM. 

Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.

What would be my options to possibly get a HELOC on my investment property?

Hello Everyone,

I'm new to the real estate investing seen but have attended seminars and done some book reading on my own up until this point and I think I'm finally ready to take the leap! Through all my studies I've developed this goal for myself to obtain my first property with as little out of pocket money as possible and I think I've found a way. So my state offers down payment assistance programs for first time buyers that meet a certain criteria. I meet this criteria and have also confirmed that I can buy multi-family properties with this program. I'm half-way through the process but wanted to check up with some legal and finance people to make sure I'm not missing any strings that may be attached here. Has anyone here obtained property this way or know of anything I should look out for before pulling the trigger?

Full disclosure, my credit has taken a toll during the last two years. For the last year I have consolidated date, gotten rid of credit cards, and gotten on top of bills. My credit is now a 645. I owe about 67k on my house. Depending on the market it’s worth about 160-180k. I bought my house with the intention of moving to something more favorable to my needs. I understand a heloc can offer up the 80% of equity. That got me thinking, I could get one, have it available in case I find a property I like. Then use it for the down payment, closing costs, moving expenses etc. then use the rest to touch up my current home and get a tenant. Is this a legitimate thought or just crazy? 

When getting a mortgage, there are several more highly leveraged (low down payment / equity) loan products for owner occupied property. Do cash-out refinances have similar benefits (more leverage) when owner occupied?

i.e., using the BRRRR strategy and doing a cash-out refinance out of hard money, is the allowed LTV on a cash-out refi higher when owner occupied?

If Fannie/Freddie offer about 70-75% LTV on cash-out refinancing (about 5-10% less leverage compared to a typical mortgage with 80% LTC / 20% down payment), I could only hope that the allowed leverage for owner occupied is similar (maybe about 85-91.5% LTV, 5-10% less leverage compared to an owner occupied mortgage with 95-96.5% LTC / 3.5-5% down payment). Maybe I am missing something here.

I'm wondering whether this is a reasonable metric to evaluate lenders on, because as explained above it seems so to me. One way or another I will probably figure it out when 20 of them all say no or a couple say yes 😬

Looking to buy a single family home and use as a STR on Airbnb. Are there any loans out there that require less than 10% down?