Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Robin A Jackson

Robin A Jackson has started 6 posts and replied 11 times.

Hey ya'll!

I am in a sticky situation and looking for some advice. I am in Portland, Oregon. I just tried to refinance two of my investment properties. Both properties have the tenants growing cannabis growing in them.  I have refinanced both of these several times in the past and it's NEVER been an issue with the appraiser. They haven't mentioned it on the appraisal. 

This time, though both appraisers mentioned it subtly. One of them thought it was ok to as Cannabis is legal in Oregon and he didn't know. Anyways the underwriter denied the loan 6 days before closing. 

My bank said they would assign the appraisals if I could find another lender to service them. Sometimes banks will take properties into their own portfolios which have different guidelines than Fannie and Freddie. So I'm trying to find a lender who will take residential investment properties into their portfolios. All of the credit unions I have called do not. They only take PRIMARY residences or commercial which means higher rates and issue w the Fannie/freddie again. 

Does anyone know a bank or lender who will? And/or might take my appraisals? 

I'd prefer to go this route first vs having my tenants clear all of the plants out and having to do the entire appraisals all over again. 

I'm guessing I need to find a bank in Oregon or someone who is licensed to loan in Oregon. 

Thank you for ANY help! 
Warmly

Robin 




Post: Cash out refi or HELOC for new purchase?

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

Thanks @Jaysen Medhurst I'm going to DM you! I so appreciate it! 

Post: Cash out refi or HELOC for new purchase?

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

Hi @Jaysen Medhurst thank you for your reply and input! Means a lot. I bet this comes up a lot. I watched the video by Brandon on it just now. 

So you are suggesting going w the HELOC, given your two conditions?

FYI the $800/month payback is based on the variable rate. I feel uneasy about that, and I agree I don't think they will go up anytime soon. I guess If I end up having this for 20 years (I hope not) I'd have to manage it if rates went up. 

The prob is I'm not sure what I'm going to do w the money yet - if it'll short term or not. I might want to purchase a home to live in, in which case I'd leverage the home as well (1-2 other units, rent rooms). But then I'd be stuck w the HELOC payment on top of the mortgage unless I can refi it enough to pay that and the rehab costs off. 

If I do that or BRRRR, I guess I'm not sure how I'd pay off the HELOC AND any rehab costs with the refinance of the house. That would need to be a HUGE jump up in value to cover both of those (Say $100k HELOC and $75k rehab) on top of the existing loan payoff.

My portfolio can handle a bit of debt service - but I'd really need it to be covered and then some by additional net income coming in. 

I guess the prospect of the Cash-out refi seems less risky as It's just 337/month and only $52 more than what I'm paying now on that property due to the lower interest rate now. So for just $52 more a month I get $75k. But in fact I'm losing the 337 I'd be getting for 30 years on that loan! 

But the HELOC feels less tied down and less committed which is nice. 

I feel like a ping pong match in my head over this!!! 

Any more input based on that? Thank you I appreciate it! 

Robin 

Post: Cash out refi or HELOC for new purchase?

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

I realized today that I need some more savvy friends for pinging scenarios off of! I live in Portland, OR. I'm wondering if you'd be willing to give me your two cents on this. I'm going to include specific numbers. And maybe this will be helpful for other who face a similar choice! 

GOAL: I want to purchase another income producing property in about 6-14 months from now (depends on market and my energy).

I don't have a downpayment. 

I am refinancing one of my rentals and was planning on using a cash out refi for the downpayment on the new house (as I have done twice already to buy two other houses - both great choices!). 

Then I thought maybe I should leave the equity in and take out a HELOC instead later. Reason being that I might not touch the $75k cash out for up to a year and It's going to cost me $337/month extra so why pay for that? Why not wait and only take it out once I'm ready.

If I do a HELOC they will loan up to 80% w no closing costs. So up to 116k (based on my appraised value of 500k). 

If I cash out now w loan at 3.5%: 
75k cash out (337/month) 
+ $25k HELOC later if I want to go up to 80% (170/month) 

Of if I wait and do a HELOC later for 116k It'll be about $800/month for a 20 year payback at 4.875% 

My concerns with the HELOC are that the rate is variable. Though I can lock it in (at a potentially higher rate 6% later) And also I don't know if their appraisal will come in the same. Some unknowns there. Or if my DTI will work by the time I apply.


But if I go w a HELOC that also means I can do a non-cash out refi on my rental and that means lower rate and monthly payment of 1600/mo forever at this great rate, so I'll be saving that to offset the HELOC payment.

Lots of variables and "don't know the future" in this one! 

If I do the cash out refi I may  end up paying each month for a loan I'm not using and have a high payment for the life of the loan (and losing the cashflow) but it seems sure and safer. 
If I do the HELOC, I might end up paying more later on, however I'll save on the rental payment being lower and have more flexibility .

Anything I'm not aware of or perspective you see which might help? I'd be grateful! 

I am in the loan process already (appraisal just went through) so I need to decide quickly what I'm doing.  

THANK YOU! 

Robin 

Post: Advice needed on current duplex project

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

Hi friends! 

I am humbly in search of some advice/consultation. 

More than anything, I'm looking for someone who might be willing to spend a little bit of time talking with me about my specific project in detail.  I think this would be more effective than laying out all of the details on here and getting lots of advice, as there are layers to it.  If you live in Portland, I'd be stoked to have you over to look at it. And/or I can show you photos/skype. 

I am open to compensating someone as a consultant, or buying you lunch/beer. Or trading advice if you need it! I have a lot of great connections and am am a referral machine. 

BRIEF ON THE PROJECT: 

I bought a smaller multi-family property in April.  It consists of two houses and two garages. I'm just about done remodeling one of the houses and it's rented.  I'm trying to decide what to do with the second house in terms of leveraging the space. And how to manage and be strategic with my finances and navigate current zoning laws.   I'm walking a fine line right now and I'm a bit nervous and unsure of my original plan.  I have several options and a good understanding of out of the box financial maneuvering.  

I need a set of seasoned eyes from someone who is also good at this stuff (and enjoys it!)  and can help me dig into it and come up with the best move to make right now. Someone who has done a lot of buying and development on this level .

I'd be SO grateful for some help!~  And again, I'm happy to compensate you in some way for you time.  I'm part of a super rich community of entrepreneurs  and have access to some killer referrals if you need them. Networking is my thing.  

Please message me and thank you so much. I love this place.

Robin 

Post: Construction remodel loan: Private vs Bank?

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

@George Despotopoulos thank you for the feedback. I was thinking this is a good option as well. Yes, I have thought out the exit quite a bit. And we'd have a title company write it up for us. 

@Kerry Baird that do you mean by this? Thanks! 

Post: Construction remodel loan: Private vs Bank?

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

I have a loan strategy question that I bet will help a few people in similar situations! 

Quick on me: I own 2 SFR houses and I recently bought a third property that is a SFR and an ADU on a large lot w two garages. I am converting one garage into another ADU. I'm looking for a 60k construction loan to do this. I have already used 0% 15 month APR credit cards and cash for work on the house remodel (yes, I have a plan to pay them off).

I was thinking of getting a HELOC for the 60k loan, but my DTI is too high ( and my parents have no income for co-signing).

OPTIONS:

1. I have a private money lender who has offered me a 10% loan at 100% LTV w no points. And a flexible term (6-18 months).

2. Otherwise, I was going to look for a bank loan and try to get something that charges me as I draw (vs getting one big loan all at once) and slightly lower interest. But I'm having a hard time finding one that has no points and also mainly - that does not balk at my DTI.

Does anyone know of some really good funding sources/banks? 

Or does the private money lender sound like the way to go? My mortgage broker thinks I should do this ( he is also a friend). 

My plan to pay off the 60k loan is the refi the house once all of the work is done. OR get out a HELOC at that point once I have rents coming in and my DTI goes up.

Thanks! 

Post: Looking for good real estate lawyer in Portland

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

@Chris Shepard Thank you that helps man! I think the unrecorded DOT is the way to go. Oh we met at the Portland meet up, right? You gave the talk? : ) Great to meet you.

Post: Looking for good real estate lawyer in Portland

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

@Neal Collins and @Brad Hammond thanks so much! I'll check out Shawn first. And yes, I'll have all of the terms laid out. This is the first time I've ever used a private money lender and done a contract like this. While I have you on the horn, I'd welcome any advice you have about how to handle it. No presh. Here is what I have going on though: 

I have 3 lenders lines up. 

One of them is going to fund the bulk of cash needed. 80% of ARV. He has agreed to offer me a private money loan at 10%. With one balloon payment after 6 months. He asked to have collateral on his loan. He doesn't know much about this sort of stuff. Based on my research, it seems like tying the Prom note to the deed of trust is the way, yes?

The other two lenders are lending me smaller amounts to cover the rest. One of them asked for some sort of collateral in case I die, get sick etc. I don't want to have 2 liens on the house. So I'm not sure what to offer her except what's in the standard prom note regarding legally needing to pay, the note being passed to my heirs, etc. Any advice there? 

Any other tips or forewarnings welcome! 

Thank you! 

Post: Looking for good real estate lawyer in Portland

Robin A JacksonPosted
  • Rental Property Investor
  • Portland, OR
  • Posts 11
  • Votes 0

Looking for real estate attorney. Must be well versed in creating private lender contracts and have knowledge around all of the complexities of that. Thanks!