All Forum Posts by: Phil Harris

I have a few different investment accounts and some other assets.  I do not want to walk away from some of my positions in these areas.  Without wiping out these accounts to get my cash is there another way I can go about getting my down payment for a 4 plex or larger?  Like a secured loan with my 401k as collateral?

I'm having a bit of an issue. I've got money in an Edward Jones acct. left over from the sale of my first home 4 years ago. I specifically wanted to use that money for real estate investing. I'm at a point now where I don't want to lose my positions. I want real estate but don't want to wipe out my acct. At some point I would like to gather up all my accounts and go all in on a multi unit property that will allow me to live on that money. I am considering a HELOC right now, but I was thinking of maybe a line of credit, or a personal loan? Has anyone else had this scenario before? Any specific banks to work with?

Jeff, thank you for the response.  My goal is long term income.  My main issue was not losing my positions in my other accounts, thus the need for a personal loan or a collateral loan of some kind.  I am only looking at 5 units or more now because he said that would be easier for him to finance.  I was at Wells Fargo.  My strategy is to take the income and equity I have now and turn it into something else.  I don't want to wait 20 more years to "retire".  I feel I have most of the money currently to turn it into cashflow now so I can slow down a bit.  Maybe I'm wrong?  I don't feel like I am far off though.  I've been in trucking for 20 years and its killing me.

I just got back from talking with the bank about my situation. I was told in my situation that I should be looking at properties with 5 or more units. My goal is to simplify everything and to have one person I can go to with all of my needs. I went in with the question can I consolidate all of my accounts and use that as collateral towards the purchase of a property. I have roughly 100k sitting in different spots, Edward Jones, and work 401k's, and some other equity. He steered me towards a HELOC and I could get 60k towards a down payment that way. Not sure what my question to the group is, but I want to be able to rinse and repeat this process at least every 6 months. Would this be doable? I've been told lots of stuff, and have read lots of stuff. He says, 5 or more units is going to be easier for me to get financed than 4 or less. I'm probably making this more complicated than I need.

I appreciate all of the help.  As previously stated I will not be living in any of these, they will be non owner occupied.  I will stick for now with the conventional way, and then in a year or two try to combine what I have into a portfolio loan.  One last thought for now.  10 four unit properties would be acceptable conventionally then?  Am I understanding this correctly?

Thank you.  I think I will have to go conventional now as I already have one fha loan.  I won't be living in any of these properties.

Wilson, thank you for your response. It was my understanding that I would be able to purchase four 4 unit properties under FHA before I had to start looking at other avenues. I do know that I can atleast purchase one 4 unit property FHA. Can anyone else clarify this?

I was hoping to use Quicken Loans and FHA for my first 4 properties. Turns out a 4 unit multi family is considered 4 properties or at least that is what I was told. I have some emails and calls out for portfolio loans. And I am considering business lines of credit too. My goal for the year is just 8 units, but 20 or so within the next 3. If I am going to have to get commercial loans in the future my thought was I might as well just do it now and get 1 eight unit complex. I am currently working with about 50k in cash that I am trying to leverage as best as possible. We have high credit scores, and make over 100k per year. I have my 20% I can put down conventionally and get a great rate. My concern is having that money stuck. I am not interested in fixes and flips, but long term cash flow. Can someone set me straight? I've been reading too much.

I had this same question as it came up with me yesterday.  I was told by my Quicken guy that if I bought a 4 unit, then that would be my 4 units.  I was also told that I would have to seek a commercial lender after that.  If this is accurate then I am in a bit of a bind and I need to adjust my plan.  I was hoping to purchase 2 four unit properties by years end.  If this is the case I might as well find an 8 unit and just go commercial from the start.  Or can I go with Chase or Wells Fargo conventionally?  My other issue is running out of down payment money.  I'm trying to leverage 40k into 2 deals this year, and then 2-3 more next year.

I've spoken with the son.  I am trying to find comps for the home.  It is a standard 3 bed, 1.5 bath home with 1800 sq ft and a 2 car garage.  Lot is 9150 sq. ft.  My comp issue is a detached shop with another 650 sq. ft.  There is a wide range from 360-420k.  My parents are not interested in what I've offered to do and I am not willing to let this deal go yet.  There is a tremendous opportunity for me to get this since it isn't listed yet.  The house alone would rent for 1800-1900 but I don't want to tie up 20% as a down payment.  If I can get this under contract, then what?  I want to buy it, but it isn't going to work for what I want it to do right now.  I also don't want to be the ******* neighbor that took advantage of an elderly woman by flipping her home.  I still have to live in the neighborhood.