All Forum Posts by: Matt Nico

 Evelyn,

I literally just put in an application for a HELOC on one of my properties 3 hours ago. I'm pretty sure almost every bank will use income verification to approve you for a HELOC, so if you dont make much money or quit your job, you could run into a really hard time getting one. My suggestion would be to save up money and buy a house or 2 before accessing equity in a house. I'm on my 4th deal now and I am just now getting the HELOC ready. Its a good tool in the tool belt, but not right away.

Happy Housing,

Matt

 Brian,

Wouldnt the banks be able to call the mortgage due if I do that? My understanding was that I had to get a written notice from them to allow me to transfer the ownership of the house into the LLC's name. Assuming they say yes, then I would go ahead with the quit claim deed.

 @ Brian Braddock,

Thats actually what I'm looking into now. I figure if I can clear my (and my wifes name) of all the mortgages, then its basically like we have the income with no debts. Have you ever done this personally? I figured I would start by calling up all 3 mortgage companies servicing each house and ask if I am allowed to transfer them.

@Shaun Weekes

Shaun, Yes I agree with you 100%. I very much need a loan office that is experienced with investors. When I try to explain to my broker and to banks what I'm trying to accomplish they all seem to not really understand whats going on. I do business in Florida. If your company lends in Florida I would love the opportunity to give you some business.

 @Nik Moushon

I am trying to get the loan under my own name at the current time, so thats not my problem. What I am trying to do is exactly what you suggested; Get another house hack as an owner occupied with my name on the loan. I mentioned in my original post, I have a lot of people who are willing to lend me the money with a 15-20% down payment and an non-occupied loan. But I want to live in the house and do a live in fixer upper and then house hack. Its been working so well for me I want to do it 1 more time while I buy non-owner property later in the year.

@Brian Braddock

Brian, they are in my personal name (and my wifes). 

Hi everyone,

I think I'm finally ready to start posting in the BP forum. I have 3 deals under my belt, and I have been listening to the podcast for a while now. Excited to be in the forum and I hope I can not only get answers on here but provide people with info too.

-Matt

Guys/Girls, I really need help....

I recently quit my job to do real estate full time. I'm about to have my RE license, and we also have an LLC with our property income flowing through it. So My wife makes $60,000+ at her job and we also have 3 cash flowing rentals. These rentals don't just cash flow a few hundred, they cash $1000+ Profit each and every month like clock work. Each one was house-hacked. Bought one, lived in it for a year, then bought the next one and then moved. Its been a year + a few weeks now so we are ready to get the 4th.

So I talk to my broker to get the standard pre-approval letter, and she cant give me a loan for anything, saying that our DTI is 128%. I've tried a dozen banks and they all say the same thing. What is happening is that because the last house we bought doesn't have 2 years worth of rental income, they have to count that house mortgage against us, but don't count any of the rent.

So in a nutshell, my 3 incredibly profitable cash flowing rental properties are killing me in getting another mortgage. This doesn't make sense to me, and I'm stuck. Without my income from my job, her income is not enough to be able to get us the 4th mortgage. On top of that, everyone is telling me I need 2 years of self employment income before that will count for purchasing power, and the creation of the LLC is trapping me to where lenders wont count rental income. Nobody seems to want to lend for a new business.

Is there anyone who can provide me with any sound advice on how to move forward? I could just sit on my hands and wait 6 months for my properties to pull in enough cash to put a down payment on a house, but I want to go go go.

So my question is as follows: How do I "Afford" to get my next mortgage? I want to HELOC my house which I can take out $50,000 to buy an investment property, but they require income verification for that too. A business needs 2 years of income to get a business loan. I really seem to be stuck between a rock and a hard place, and I'm determined to break out.

Help is appreciated,

Matt Nico

@Amelia McGee

Hi Amelia,

I learned how to do everything by using mostly youtube with a little google thrown in. Electric, plumbing, drywall, framing, you get the idea.....

This guy is my savior:

Home Renovision DIY.

https://m.youtube.com/channel/UCnorhjQR4zJkT7AVNhu395Q

Make sure you always buy the right tools for the job.

Hope this helps,

Matt Nico