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All Forum Posts by: Ryan Wiley

Ryan Wiley has started 2 posts and replied 4 times.

We're buying as owner occ but still putting down 25% because it's a three family (plan to live there). We currently do own a home and are selling in the spring. I love the thought though...definitely something to consider.

Scenerio:

My fiance and I are buying an investment property together. The bank advised us not to apply for the mortgage together because her income has essentially nil for the last year; however, she has substantial assets that we will use for the down payment. My income is enough to be approved for the mortgage, so I will be the only signatory on it, while we will both be on the deed.

Our plan was for her to "gift" me the funds and apply the fund to the down payment. The bank holding the note is fine with is. The bank liquidated the assets for the down payment, however, raised some concerns. They believe that while we are gifting the money, this is technically a loan, since she will be on the deed.

Are there any recommendations on how to structure this? Obviously, we'd like to avoid the gift tax, if possible.

@Jeff Greenberg Wow, Jeff, what a thought! I'm going to scratch the numbers and see if it makes sense. Can I make sure I'm understanding this correctly? Let's say the property is selling for $100k, I put down $20k and invest $15k in rehab--when I refi, I refi for a total of $115k and "pay myself back"? Sorry for the next amateur question: when it's time to refi, do you suggest a traditional lender (local or national bank)? 

Thank you!

I'm new to real estate investing and am prepared to make my first purchase. Regarding financing I have a few questions; here's the scenerio:

a) 3 unit property with an 11.25 cap rate -- excellent location: 1 block from train to NYC, near a revitalizing main street, close to many amenities 

b) two units just vacated--all units are livable, but my partner and I want to "spruce them up" and increase rent approx $75-$100 per unit. We estimate approximately $30-$35k in rehab costs

c) we are pre approved with a conventional lender and would need to put down 20% ... this is fine, however, we're wondering if there is a loan option to cover some of the rehab costs? Or is it suggested that we just rehab with cash--and if so, how should we calculate how much cash to invest in rehab?

d) we inquired with the seller about them holding the note. They are agreeable to it, but expect we may be charged 1 - 1.5% higher interest rate. We understand that a percent or two makes a huge difference over the long term, but I like the idea of not leveraging my credit with the conventional lender and using that option for a second acquisition.

Look forward to the input! Thank you