All Forum Posts by: Pablo Ramirez

@Itay Peer

Hi Itay,

I had the same question about Indy and decided to make a 3 day trip out there to see it myself. I’d suggest scheduling a trip and building a plan for what areas you want to see each day. Check out some BP posts already mapping out great areas of Indy to invest, as well as an investor friendly realtor’s suggestions. Take advantage that you’re there to meet with a realtor, PM, attorney, contractor, etc. It will be a lot easier to contact these people later on once you’ve established an-in person connection.

Take lots of pictures/notes for yourself, especially since you’re new to investing in the area. Without my notes, I wouldn’t remember half what I saw. Talk to homeowners on the street if they’re sitting in their front yard. I made valuable connections by just saying hello to them, and now I’ve got boots on the ground to help me identify a new property or any neighborhood changes.

Best of luck!

 Hi Ley,

I would be refinancing with a conventional Fannie-Mae backed lender as their terms are more attractive than a commercial loan, and conventional loans can be done on investment properties at terms still better than a commercial loan. It's just figuring out the timing of LLC/Personal name and which lenders allow what.

What do you mean leave the Title open? 

@Kyle Altenau

Hi Kyle,

You are absolutely right. This would only be an option assuming I've cleared it with the HML. Each will have their own requirements and risk tolerance. I appreciate you letting me know HMLs do still look at Title like conventional banks do!

Relationships are key. Now I am just figuring out what my refi lender options are, and much of that is contingent on how I vest title of the property. Would you have any recommendations for HMLs or conventional lenders in my situation?

Julee,

Thank you for this clarification! I can see you have plenty of experience in the world of lending. I will send you a private email to further connect. Thanks.

Hi Julee,

Thanks so much for the response. Good to know Fannie Mae lenders will include LLC ownership within the 6 months seasoning period and just ask to execute a deed transfer into your individual name to fund the loan.

However, can you clarify what the "simple process" is for "Once the loan funds, there's a simple process to obtain formal permission to put title back into the LLC. With that completed, I can record the deed back to the LLC with no concern over having my note called due to a due on sale clause." 

And if that simple process is done, does that loan then count as 1 of 10 for your government backed loan limit? Thanks. 

Hi all,

In my recent HML shopping, only one is willing to lend to an Individual while the others require an Entity. As this is my first BRRRR, I'd like to cash-out refi with a conventional Fannie/Freddie lender after seasoning period while my DTI & 10 Fannie/Freddie loan limit supports it.

If I create the LLC and vest title in it to the HML's liking, how and when would I transfer ownership of the property to my Individual name to be eligible for a conventional refi? Could I do something like a quitclaim deed right after closing with the HML in order to allow 6 months of required "seasoning" by the conventional lender after the title transfer to my individual name? What are the risks? Anyone been through this?

I understand Private Money may eliminate this hassle, but for the purposes of education let's assume HML is my only financing available. Thank you all!

Rich Dad Poor Dad.

Rich Dad Poor Dad.

Rich Dad Poor Dad.

Read the book. Read it twice. It will help build a foundation of knowledge and shape your mindset away from how most live, acquiring liabilities and and never focusing on their assets.

You’ve got the drive; now use the drive to educate yourself. And do NOT make the mistake of spending tens of thousands of dollars on an education unless you know what you’ll be doing afterward and it’s profitability.

I’m excited for you! Lots of good information from these posts. Best of luck.

@Richard Covarrubias

Hi Richard,

I’ve been looking at Indianapolis for a while now and taking a visit this weekend. This post from Sterling White has been invaluable

https://www.biggerpockets.com/blog/guide-grading-indianapolis-neighborhoods

It’s about two years old so some things may have changed, but still a great starting point.

Also, take a look at Trulia’s crime map, as well as city-data.com - Trulia’s map for that intersection shows a mixed bag, but it also gives you what type of crime for the area (for example assault vs. DUI).

Hope this helps!

Pablo

@Mike D'Arrigo

Excellent post Mike. Thank you for sharing. Your writing is noticed and appreciated!

Hi Reva,

You may want to check the Due on Sale clause with your lender holding lien on the property. Sometimes this transfer of ownership can trigger it and the bank require the note paid in full immediately. Each lender Is different, but you'll want to check with them.  Would hate to have the mortgage due in full because transfer of ownership.