All Forum Posts by: Michael Chang

Hi all,

Can anybody recommend a mortgage lender in North Jersey? I have a unique situation and I was hoping somebody could shed some light on how to deal with it. 

I found a condo/apartment that I wanted to purchase as a rental property, but it was under short sale so I figured making the offer in cash would be more appealing to the bank and seller. 

Since I did not have the cash on hand, my parents agreed to help by borrowing from their stock portfolio. At the moment, we have decided that they will purchase the property in cash and then sign the property over to me after closing (either as a gift or by me taking out a personal loan from them, secured by the property). My plan was to refinance with a conventional loan immediately after and give them the cash so that they could repay their broker. 

I've spoken to two mortgage lenders and posted on BP, and it seems most lenders require a 6 month waiting period after closing. Is this a hard rule or just bank preference? Are there lenders that are willing to refinance immediately? I would like to avoid waiting 6 months, since if we proceed as planned, we will lose out on the tax benefits of those 6 months of interest (my parents will be incurring the interest, which I assume will be nondeductible as business expenses if they transfer the property to my name)

Thank you all in advance for your help!

Thanks for the responses. 

If I were to borrow the funds from my parents and secure the loan with a lien on the new property, wouldn't that raise some flags with the new mortgage lender? 

Would it simplify things if they were to gift the property to me instead of providing me a loan? Since the lifetime exclusion is over $5m, I don't expect this ever to be a problem.

Hi all,

I have what seems to be a unique situation that I'm having trouble getting answers for.

I'm planning on purchasing my first property in a couple months. To expedite the closing process, my parents will be helping me pay for the property in cash. They are most likely going to borrow from their stock portfolio to purchase the property and then sign it over to my name after closing. To get past the gift tax, I figured we could just draft up a loan agreement saying that they are loaning me the money to purchase the house from them. I then plan on getting a cash out mortgage to pay them back immediately. 

I spoke to one mortgage lender who said I would have to wait 6 months after closing in order to refinance. Is there a reason for this and a way around the 6 month waiting period?

Thank you all in advance for your help!

Thank you all for the great feedback! Looking forward to putting your advice into action

Hi all,

My name is Michael Chang and I'm an aspiring real estate investor from NJ. I've been reading BP for a couple months now with the intention of getting into buy and hold investing, but still feel too uneducated to start making moves. I've seen other posts where people said they had success with this strategy in North Jersey; from what I've seen, the most profitable locations are pretty risky areas like Newark and Jersey City.

Perhaps I haven't been looking long enough or I'm looking at this the wrong way, but I figured the first step is to reach out and ask for advice. Thank you all in advance for your help and I look forward to becoming a contributing member to this community!

Hi all,

My name is Michael Chang and I'm an aspiring real estate investor from NJ. I've been reading BP for a couple months now with the intention of getting into buy and hold investing, but still feel too uneducated to start making moves. I've seen other posts where people said they had success with this strategy in North Jersey; from what I've seen, the most profitable locations are pretty risky areas like Newark and Jersey City. 

Perhaps I haven't been looking long enough or I'm looking at this the wrong way, but I figured the first step is to reach out and ask for advice. Thank you all in advance for your help and I look forward to becoming a contributing member to this community!