All Forum Posts by: Ryan Muska

Hey Taylor, there was a thread similar to this a couple months back that may shed light on your situation: https://www.biggerpockets.com/forums/12/topics/1151204-using...

@Daniel Vanhala

Hard money options will most likely be your best bet. You could purchase the property now with a Hard Money loan that has a 12-18 month term and then when the term comes to fruition you could refinance out of it into a conventional (or you could refinance earlier). There will be closing costs involved and you will have to have a certain amount of equity left in the property after you refinance.

What do you need advice on? Whether or not this is possible or you should do it or if there are other strategies?

They are adjustable rate.

Typically need to be in second lien position (there are exceptions).

They are like a credit card (pay it off and use it again as many times as you like during the draw period).

There may be a required initial draw amount you may not be allowed to payoff for a certain period of time.

Blended rate with a first mortgage and a HELOC in second may be higher rate than just cash-out refinancing. So, don't be bound to the rate of the first mortgage!

If you plan on using the money right away, Cash-Out Refi is better. Especially since interest rates on conventional investment loans are in the low to mid 7s. Could save you a lot of money.

HELOCs are good if you want the money but don't need to use it immediately. Those rates are in the high single digits to low double digits typically and are going to be adjustable.

Happy New Year, everyone!

It's the exciting time of year where everyone tries to redefine themself for the coming 12 months and although many people give up on their goals after little time, we as real estate investors must continue to strive to achieve ours. 

Stay motivated, stay educated, stay disciplined. It's easy to lack these at times, but keep trucking. 

As far as my own goals, I want to look into acquiring my second property. I began my REI journey this past year and it was not a smooth transition. I learned lots of lessons that I wish I hadn't learned while owning a property, but I am glad I had the opportunity to face them on my first transaction instead of later on in the process. For instance, knob and tube electric is a NO GO as well as electric heating.

With these lessons learned, I can further limit my buy box and move myself into more profitable and secure investments. This next year brings about many new struggles but also many new horizons. I'm excited to look into a new market that I have become interested in and make connections with people and business that can help me grow as an individual and an investor.

Going into 2024 with high hopes, the rates are lower and many foresee the continuation of lower rates. Will we hit low 5s by Q4? I'm hopeful! Lower rates means more expensive houses, so marry the price and date the rate! Let's buy while everyone is scared and let's make money while we're doing it!

Good luck to everyone in the new year and I hope everyone had a safe and happy holiday season!

Welcome to the REI family! First one is always the toughest and expect to be humbled throughout the process. As @Raymond J. Rodrigues alluded to, it is important to build a team and to ask as many questions as possible while also doing as much of your own research as possible. Good luck with everything and I look forward to reading your posts about much success in the future!

Divide and conquer! Leverage and monopolize!

Be careful, they don't really know what they are doing when it comes to getting lines of credit or just about any mortgage. Online large companies are typically paper pushers just trying to close loans and not looking out for the client

Look up "One Time Close New Construction Loans."

Those are typically 30yrs and do not require an immediate refinance