All Forum Posts by: Reid S.

I am trying to obtain a HELOC on my primary residence and I'm also trying to obtain a cash-out refi on one of my rental properties (with the intent to reinvest into another property). I currently own 4 single family homes (1 primary residence + 3 rental properties) in California. I am a W-2 wage earner. The titles and mortgages are currently all under my name. So I currently have (2) different LLC's constructed that cover the management of my rental properties (but I don't have the titles or mortgages in the name of the LLC's). One of the LLC's is owned by my wife and I equally. The other LLC is owned by my wife and I at a total of 50% ownership and another husband/wife for the other 50% (this is for only one of the rental properties).

I was told by the HELOC company that my LTV is at 73% (needs to be 40% to 45% to obtain the HELOC) so I am being denied opportunity for the HELOC, as well as being denied the cash-out refi of my rental property. I have been paying the mortgages out of my business bank accounts for each investment property since the original purchase of these properties.

I was told by a mortgage broker (that I'm trying to get approved for the cash-out refi with), that I need to transfer my titles for the rental properties into my LLC's, so that they don't count towards my LTV. The following are my questions regarding this process:

1) Do I need to transfer the loan and the mortgage into the name of the LLC for this to work?

2) If I have to refinance the property to add the mortgage into the name of the LLC, does anyone know where I can get a loan rate at a 30-year fixed rate that is similar to a conforming loan rate for an individual (I'm currently seeing rates of around 4.5% if I refi and cash-out under my name)?

3) Lastly, I am renting the rooms out individually for these homes and only have month to month agreements (not technically leases), so I'm not sure how to "pass the test" when the lender asks me for a copy of my tenant leases (the agreements state on the bottom that they are not leases). I can show that I'm putting money into the bank every month for years on end, but don't really have a LEASE agreement with tenants.

Help on any of the items above would be awesome!

My mother-in-law has inherited a house in Switzerland. My wife is a Swiss Citizen (which is a requirement to own land in Switzerland). I have an opportunity to purchase this property, and tear it down to construct a 4 or 5 level condo type building (which is what is being done by the local developers in this area). Has anyone done any Development work or Construction work in Switzerland? I see this as being a great opportunity for me to make money and own 1 floor of the building for a vacation/rental home. 

I’m familiar with Commercial Development and Construciton work in the United States, as I’ve been working as the Chief Estimator for a Retail/Healthcare General Contractor in California for 15 years. I have no idea about the potential differences in laws and construction/permitting/Contracting/lending requirements in Switzerland. 

I’m sorry that I don’t have very many specific questions yet about this opportunity, but I have to buy the property from the mother-in-law quickly because she wants to get rid of it in a hurry and she has already contacted a developer in the area that is putting together a price for the property. She will allow me last look on the property if I can get comfortable enough with this project in a hurry. I’m just curious if anyone has experience dealing with a project in Switzerland that might be able to give me some pointers or be interested in investing in this process.

Reid

I have 3 single family residential homes as investment properties/rentals in California. I am looking for the highest LTV that I can get a HELOC on them, individually. The highest that I have found is 80%. I have a 95% LTV HELOC against my personal residence... is this a value that anyone offers for investment properties?

Does anyone know if I can obtain a single HELOC against multiple properties instead of individually?