All Forum Posts by: Michael Dunn

Great Pont, thank you both for your replies 

Good Afternoon everyone ,

I need some advice on a HEOC please 

I currently have a HELOC , of which half of it has been used ( $10,000 )

I am going to be able to " Pay back " that $10,000 and thus have None of the HELOC used anymore

Since I will likely need this $20,000 at some point down the road to purchase another Investment property , should I keep the HELOC and leave it as it is or should I close it out ?If you close out a HELOC , do you get that money back from the Bank in the form of a Check ?

I was thinking of just going to cash instead of a HELOC and keeping the $ in my own personal Bank account

Any advice and recommendation are greatly appreciated

Thanks so much 

Thank you all for your help 

Alexander Felice ,

So you are saying that I should go ahead and withdraw 6 months worth of payments for both my Primary and this Investment property , and put it in a Savings account and let it seasons a few months ?  Thank you for your help 

I need some help regarding the following questions please:

1. The Lien goes away in March ( which will be the 10 year Probation period of the Lien )

What about the Probate afterwards .............. Will the Lien be " Lifted " in the ( Books ) the day after the 10 year period/day has passed ? How long does it usually take for the city/state to record this in their books/archives ?
2. There is also a second Lien on the property ( a Nursing Home ) lien Who would I need to talk to , regarding what the exact amount that is owed , as well as , who to ask on if they would settle for taking 1/2 or even a 1/3 of the amount that is owed ? It has been 2 years since the Lien has been active / Not paid ........... So would they maybe " wipe clean " this Lien , and therefore nothing is now owed on it ?
3. As of last year back in 2017 , the Heir ( Executor ) , his sister was told that she had to also sign the Contract to sell the Property . But as of 1 week ago when I talked to the Executor , who told me that his sister no longer was obligated to sign the contract , to sell/transfer the property over to me . How can I Confirm that she does NOT have to sign any part of the Will ? Is this something that my Attorney can " Easily " find out ? I ask this , because he told me ( as well as her attorney told her ) that due to our State's Law , that she had to sign , in order to transfer and sell the property But as of last week, they are telling me that she no longer has to ................. Once this 10 year probate period has ended ( in March ) this NO MATTER WHAT should free her from having to sign / any liability to the property ?
  4. Is there anyway to avoid and or to get the Process going right NOW via the Probate period , instead of having to wait until after the 10 year lien period is up in March ? I have heard that it can take up to 1 - 4 months before it gets recorded , and therefore , before you can actually purchase the property ??
Thanks so much for everyone's help and insight , I really appreciate it - Michael 

Would a Lender use the $ that I have in my HELOC account ........... would they let this count towards being $ that I have in a " Savings Account " , as they want to see that you have 6 months of Rent saved up " Per " rental / your own personal Residence that you have Thank you for the input and help 

A property has a lien on it currently , but will be ". gone " from the property in a few months ( the line's 10 year probate period Will be up in a few months )

The property needs $20,000 in repairs ( materials only )

I currently have a FHA loan on a property

The ARV on this investment property will be $130,000

My all-in cost for the property will be around $80,000

My main questions please are:

1. will i be able to get a 2nd FHA loan if I make this my primary residence vs an Investment Property ? Even if I currently have a FHA loan with my current primary residence?

2. I would have to get a 203 rehab loan , correct ?

If so , would I be able to do the majority of the repairs myself, so long as I can show proof that I can do the work ( I've been a contractor for 12+ years )

3. Would a HML be my best bet on this property .......... as i may have a better chance for being approved to do most of the repairs , as well as Having the best chance of getting a loan for the property?

4. What are the current ....... Points and Interest Rates for a HML ?

5. Would I have to come up with any money/ put any money down .......... depending on how good the deal on the property is , and if I can get it for under 70% LTV ?

Thanks so much for the help

Hi ,

I have a quick question please ,

with a HML , can you " Pay yourself " for doing the Repairs/Renovations of the Property ........... so long as the HML lender approves you/clears you to do the work ?

Thanks so much 

Aaron Klatt ,

Thank you so much for answering all of my questions ........... Really helped me a lot and helped put everything in perspective 

I may have another question or two , as I call a few Private Money Lenders in my area  

Thank you again for all of your help , I'll keep you updated 

I'm leaning towards doing a HML ( will be my first )

I have read and understand the way in which HMLs are constructed and how they work in a general sense , but given t's now 2018 and since the last time I really considered using one , was 2 years ago, I'm not sure if the rules/regulations/Interest and Points have changed much 

Scenario:

The ARV on this property should come in at $130,000 given recent comparables

Repairs/Renovation costs  ( Materials Only )  ........ $20,000 

Assuming a 6 month HML at 15% Interest and 4 Points ( I'm using both of these on the higher ends ) ........... the total costs for the HML loan = $10,000 ( averaged out ) , and a LTV of 70%

So  $91,000 is what I have to work with  

My Questions please are:

1. Is 70% LTV what most HML lenders use ?

2. 6 month length of the Loan to complete the Renovations and Repairs ?

3. Once the Renovations are completed , do you just Refinance into a Conventional ( 80% LTV loan ) ?

4. Is there a " Penalty " if you complete the Renovations before 6 months and want to Refinance in say 4 Months vs 6 months ?

5. What are the Standard  Points ......... 2 ?  3 ?  4 ? 

6.  What about Interest Rates .......... 10% ?  12% ?  15%  ? 

7.  Will they allow you to do the Repairs yourself, so long as you can provide proof , that you know how to  ( Myself and my Father , both have 45 years+ between us ) 

8. Do they do a  " Draw "  as to how they give out the money for the Renovation costs ? 

9. Would I have to put up any Money Up Front , to get and qualify for the HML loan ............. or do they mainly loan , based soley on the Deal itself ?

10.  If the Property currently has a Lien on it , will they still loan on it , and just pay the Lien off , as soon as we close on the deal ?

11. How do they come up with an amount that they will loan on the Property BEFORE the work has even begun on the property , given that the property is currently Distressed and needs a full Renovation on it ? 

Thanks so much for the help , i really appreciate all of the help and replies 

Good Morning ,

I have a possible deal coming up , and before I get my hopes up , I want to make sure that I can even do it  ( Qualify for it )  / go about having all of the costs for the Repairs rolled into the loan  ( vs me having to pay for them out of my own pocket ) , As well As , me being allowed to do the Repairs myself  ( the majority of them ) 

Current Situation:

The property has been sitting distressed for 4+ years and has a Lien on it 

It needs a full renovation  (  estimates of around  $20,000 .......... Materials only  )

The property is willed to the heir 

He is willing to sell it , but my main question is ...........  How would the Deal be constructed , and how would I be able to Do the majority of the work myself  ( with the heir agreeing to let me do the work  ) , would it have to be written in the contract that he is giving me X amount of time to have the repairs completed ?

As far as Down Payment ........... Would I even have to put anything down ? 

Assuming the Property appraises for $125,000  and the All-In cost comes in at $65,000 

There'd be plenty of Equity in the Deal , that I could easily use it to cover all the Repair costs / Closing Costs / Down Payment ( if I have to put any down ) .  Given the amount of Equity that will be available , could we ( the Lender )  , allow this money to be used on the Front End , to get the property repaired ?

I hope my question makes sense 

Thanks so much for any and all help