All Forum Posts by: Shirley McLean

I own a free and clear home that I want to renovate and sell. If I get a HELOC or HEL, I believe I have to homestead the house before applying for the loan which means waiting until Jan 1st (I'm in Texas). I don't know that those are the best options if I plan to sell because I'm not sure if you have to pay off the loan before selling the house. Cash out refi has high costs I believe. I have a credit score over 700 and 100% equity, but low income on tax statements (self employed). I don't want to pay high closing costs or spend months waiting to apply for a HELOC/HEL then closing time then renovation. What's the best way for me to get funding for renovations now without paying a fortune in interest for personal loans or high interest credit cards?? After the house is renovated, I plan to sell it. It probably needs about $20k in renovations including new appliances. Thank you.

@Jim Cummings I bank with Chase but I really don't like them and applied at a credit union recently. @Andrew Postell it's my primary residence. i plan to move in for a while (i'm in an apartment during renovations) but once I have it completed (2-4mos), i'd like to rent it out while I travel. Not sure the ins and outs of that with regard to the HELOC.

I will need to get a HELOC very soon to do renovations on a house that has 100% equity (paid in full). How do I find a good lender with the best rates? The property is in Northeast Texas and I am self employed so taxes don't show strong income but have good credit. I know credit unions offer best rates in general but how do I narrow it down from there and what should I look for? Also, I read that if you pull out over a certain amount ($50k?), it hits your credit score differently than if it is a smaller amount. Smaller amounts are seen as a line of credit like a credit card and will appear to your credit that you are maxed out in that account. Larger amount is weighted as a loan and not a credit line. True? If so, what is the amount that determines this?? Thank you.

My question may need to be in the mortgage thread but I'm not sure how to move it there or if I am allowed to post it twice. Still learning how to use this site. 

Thank you @G. Brian Davis. I appreciate your feedback. I'll actually be in Annapolis next week. Beautiful area you are in! 

If you have a property that is paid for free and clear but needs maybe $20k in work to get it into rentable condition plus you want money to rehab a second property (maybe $35k in rehab costs) that you need a loan on, should you do a HELOC or Home Equity Loan to finance the two rehabs? Would you be better off on the second property to get a Fannie Mae homestyle loan which includes the mortgage loan plus renovation money? What's the best course of action once both home values increase after repairs.

Example 1: $90k home paid in full, needs $20k in repairs, ARV=$150k

Example 2: $70k fixer needs $35k in rehab costs. $105k loan needed with ARV=$155k

Hey BP contributors,

I plan to get pre-approval soon for a property in Tyler,Texas. I would like either a duplex or a house with an apartment garage or some type of rental potential for a tenant to house hack. First of all, any suggestions on lenders with low down payment low or no closing costs and no PMI would be great. I am in the process of getting my realtors license but my cousin is a realtor and knows how to analyze a good deal as do I but she has MLS access. I plan to find a property that needs some updating to get the best price.

I would like to protect my asset so should I get an LLC for this purpose before I get pre-approval? If I do, will I have to then go to commercial property (5units or more?) because lenders may not do residential loans through an LLC? What's my best course of action for low down payment, asset protection, and wrapping renovation costs into the loan?

My goal is to build an investment portfolio after my own mortgage and overhead are covered via a house hack. 

I'm in the same position. I would like a duplex or house with an apartment garage to eliminate my own overhead before making bigger investment deals once I am a licensed realtor (about 2mos from now). Looking for advice on low down payment/closing costs mortgage lenders without having to pay PMI.

Thank you all. Just saw a TV guru tonight talk about wholesaling and his education course. Any opinion on those that sell mentorship and systems that you plug into in exchange for a percentage of profits. I'm not against this. I know people doing this in Maryland with success. I just don't know which system/person is the best choice.

Thank you so much. Very much appreciated Michael!