All Forum Posts by: Sam H.

Does anyone have a blank Purchase Contract for use in MIchigan? I have the lead paint and Seller disclosure forms and am familiar with an Ohio contract but not sure if there are any specifics required in the state of MI. Thanks in advance. Would like to have in my back pocket in the case of finding a FSBO.

1 Vote

Thanks @Gregory Wilson for that sentiment. I tend to agree that we could be over leveraging ourselves and your comments are a good reality check but I did not paint the whole picture. A) The $40K cash on hand was not including my emergency fund and merely represented what I wanted to stick to as a low ~10% DP or to be used for a small refresh/reno. B) This is a hidden jewel to us. We have vacationed in this area for the last 9 years, infrastructure is building, and teardowns and renos are rampant. C) This is not a real estate holding but a generational investment in our family memories. We are budgeting for no rental cashflow so see upside if we can STR and additional upside when rates eventually and hopefully drop down for a refi.

0 Votes

Cincinnati, Ohio

Quote from @Gregory Wilson:

Skip the second home altogether. Its a mistake too many have made. Unless you have discovered some hidden jewel, the traditional second home locations have all turned stale.

And, I am sorry to tell you, you don't have enough money to consider a second home. If you had a couple million in equities and a need to diversify your holdings by adding real estate, maybe. Just maybe. But a person who has $40k in "available cash on hand" needs to hold on to it for a rainy day.

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Cincinnati, Ohio

Quote from @Michael King:

Hey I have been looking at similar loan products though I plan to really dive in when my work slows down in beg of March.

Obviously rates may differ than the rate sheet being advertised but just looking it appears the home equity and home equity loans are going to be more than a second mortgage or even a cash out refinance. Just as a comparison for using greater Cincinnati credit union they have at top tier credit score 6-7% on 7-12 year fixed rate loans, 9.5 on variable loans and 5.25-6% on 10-30 year loans.

From what Ive seen looking the home equity and heloc are similar if you get a fixed rate heloc if not your probably paying more in interest. My understanding is Heloc since its a line of credit can be drawn anytime so say you buy the property with and the ac goes on a heloc you could use that to pay for it where the home equity has a period/ gives all the cash upfront.

With how much equity you have in your primary if it was me I would think about doing a cash out refinance for the whole thing as rates would be lower. The time to close might be harder I would look at heloc. If your really needed it one could also consider hard money though that will come with higher rates and getting someone to give you 300k first time might be harder than just getting loan then you could refinance it later.

Since your a high net worth person I would also try talking to local/regional and even big bank lenders. They might be willing to give different terms especially to a high net worth person that they can likely make money on cross selling.

I dont see how the risk would be reduced on second mortgage unless you are planning to hold the property in some type of llc. Im no legal expert but belief if you get foreclosed on 2nd home and you still owe money they can come put lien/go after first house.

One thing to think about is when doing heloc on primary if you want to refinance you need to get their signoff as well as your primary loan which could cause complications.

Thanks for your thoughts! I have a 2.1% 20-year fixed on my primary residence so I would not consider a cash out refi. Where are you seeing the 30-year fixed rates at 5.25-6%? I don't see it advertised on GCCU. I can get prime-0.51% on a HELOC but I don't love the risk to my monthly payments if rates rise - that is why I like the fixed second mortgage option. Fixed Mortgage does come with closing costs and points upfront which the HELOC does not, except a $95 annual fee. Either way, I am hoping rates drop and can refinance in the next 5 years.

0 Votes

Cincinnati, Ohio

Hello!

I am looking into purchasing a second (vacation) home and would love to hear your thought on the pros and cons of going a conventional 30-year second mortgage vs. using a HELOC or Home Equity Loan on my Primary Residence to purchase the second home outright. Here are the details:

Purchase Price: $300K

Down payment if taking mortgage: 10%

Available cash on hand: $40K

Equity in Primary Residence: $700K - $1M

Second Home will need $10K initial investment to freshen up for personal and STR use.

Assume equal rates for each product? Or does one product typically offer better rates?

I am thinking the Pros of the HELOC/HEL are a faster closing, perhaps a cash discount for the purchase, no PMI, lower rate/cheaper closing?, and keeping my $40K cash to invest in the property. Pros of the second mortgage are reducing the risk on my primary residence. Seems like a no brainer to me...What am I missing?

Thanks!

Sam

3 Votes

Cincinnati, Ohio

Quote from @Alexander Zeisberg:

Quote from @Drew Sygit:

@Sam H. you should compensate @Alexander Zeisberg for all his assistance, as you're highly unlikely to hire him to find you a vacation home so he can earn a commission!

I appreciate the suggestion that someone should pay me for my services, but I’d like to share my perspective. For me, being part of this forum is about much more than transactions—it’s about community. We’re all here to learn, share, and grow together, whether it’s buying homes, fixing them up, or helping our friends and neighbors create better living situations.

Honestly, it brings me joy to contribute and be of service, even without expecting payment. I truly believe what goes around comes around. Sometimes, we may give freely, and at other times, we find ourselves receiving—perhaps even overpaid—and that feels like the good energy coming back full circle.

For me, it’s not just about what we get, but how we choose to use it. So, while I value the sentiment behind the comment, I’m here to be a resource, to share, and to keep this spirit of collaboration going strong.

I was waiting for your comment @Drew Sygit. Didn’t know what we had in store but nice to see your comment and hope your doing well

Thank you @Alexander Zeisberg for all of the help here and I do appreciate your thought as well @Drew Sygit. As a former Ohio Realtor, I know well that sometimes the help provided goes unnoticed and unpaid. I love the approach Alexander has taken here and think it is a good practice to emulate in all aspects of life.

0 Votes

Saint Joseph, Michigan

Quote from @Alexander Zeisberg:

Quote from @Sam H.:

Where can I find a list of foreclosing properties in Berrien County, MI? I am eyeing a property that I think may be in foreclosure and left a note on the door on my most recent visit. I am an out-of-towner looking for a vacation rental. Web searches did not lead me to anything tangible. Thanks!

The

https://www.berriencounty.org/555/Sheriff-Foreclosure-Auctio...

I did find this but cannot get to an actual list. My county in Ohio regularly posts a list of properties up for foreclosure for each auction date several weeks in advance. I subscribed to the Berrien County Record but could not find a list there either. Any help with an example would be much appreciated. Thanks so much.

0 Votes

Saint Joseph, Michigan

0 Votes

Saint Joseph, Michigan

under 500K

0 Votes

Cincinnati, Ohio

First time poster - thanks for letting me in! I found a foreclosure listed for auction at $800K but worth $1.5-$1.8M. Could I fund the purchase using a bridge loan with the assumption to sell my existing home ($1.5M)? My thinking is this leaves me with two paths: A) Best case is I pick up the foreclosure for $1M, immediately list it for sale at $1.6M or more and hopefully sell for a > $500K pretax profit. B) Worst case is I sell my current home, move into the foreclosure, live in it for 2 years, and then resell without the capital gains tax hit.

Would a bridge loan allow the sale of the newly purchased home instead of my existing home?

Could I 1031 exchange on the sale of the quick resale of the foreclosure to buy other investments or would I be excluded from the 1031 exchange as a "dealer"?

Thanks!

1 Vote

Cincinnati, Ohio

All Forum Posts by: Sam H.

Sam H. has started 4 posts and replied 10 times.

Post: Michigan FSBO Contract to Purchase

Post: HELOC, HEL, or 2nd Mortgage to finance Second Home

Post: HELOC, HEL, or 2nd Mortgage to finance Second Home

Post: HELOC, HEL, or 2nd Mortgage to finance Second Home

Post: HELOC, HEL, or 2nd Mortgage to finance Second Home

Post: Berrien County Foreclosures

Post: Berrien County Foreclosures

Post: Berrien County Foreclosures

Post: Bridge Loan to foreclosure flip

Post: Bridge Loan to foreclosure flip