All Forum Posts by: Tomas Saenz

 Nice, that is good to know! For me it is not necessarily trying to masks my investments it is more so that I worry any financing on an investment property would affect my ability to qualify for a personal residence. In your case and experience would you suggest that it is best to find a rock star lender to accomplish this? All of my previous 3 Real Estate transactions have been done through traditional/conventional financing. Thanks

 Joe, thanks for the input. What would be the best route for that separation in your opinion? Should I be talking to a RE CPA / Broker / Lawyer etc. ? Ideally, would want to keep my personal and investment finances as separate as possible. Thanks. 

Hello BP Community,

Something I have been thinking about recently and would appreciate guidance or thoughts on. This year I will be purchasing a personal residence and an investment related property (2 separate purchases).

1. In terms of financing these purchases what is the best approach? Ideally, I would like to keep both separate to ensure best financing options on my personal residence purchase. My questions/ideas are:

A) Purchase the investment property under an LLC so that it does not affect financing on my personal residence? Ex. if I were to purchase/finance the investment property under my name (non-LLC) this now affects the amount I qualify for on a personal residence, interest rates, conventional financing products like FHA, Fannie Mae, DP assistance etc, my debt to income ratio

B) Can I separate both purchases financially speaking so that a hard money loan, commercial, investment related financing on an investment property do not affect my ability to qualify for conventional financing on a personal residence? Is this achieved with an LLC to separate the investment purchase from my personal residence?

Ultimately, it would not be ideal to have the invest property loan/financing show up on my personal name and negatively affect financing on a personal residence; the amount I qualify, rates, conventional financing products, debt to income ratio etc.

I am trying to wrap my head around how to best approach this so if anyone has experience doing this please let me know! thanks BP community.

- Tom Saenz

Hello BP Community,

Something I have been thinking about recently and would appreciate guidance or thoughts on. This year I will be purchasing a personal residence and an investment related property (2 separate purchases). 

1. In terms of financing these purchases what is the best approach? Ideally, I would like to keep both separate to ensure best financing options on my personal residence purchase. My questions/ideas are:

A) Purchase the investment property under an LLC so that it does not affect financing on my personal residence? Ex. if I were to purchase/finance the investment property under my name (non-LLC) this now affects the amount I qualify for on a personal residence, interest rates, conventional financing products like FHA, Fannie Mae, DP assistance etc, my debt to income ratio

B) Can I separate both purchases financially speaking so that a hard money loan, commercial, investment related financing on an investment property do not affect my ability to qualify for conventional financing on a personal residence? Is this achieved with an LLC to separate the investment purchase from my personal residence?

Ultimately, it would not be ideal to have the invest property loan/financing show up on my personal name and negatively affect financing on a personal residence; the amount I qualify, rates, conventional financing products, debt to income ratio etc. 

I am trying to wrap my head around how to best approach this so if anyone has experience doing this please let me know! thanks BP community.

- Tom Saenz

I'd like to follow-up on this and update the BP community. 

At the end of the day I sold for about 20 K gross profit on my initial purchase however taking into consideration taxes, holding costs, and rennovation costs I am closer to break even. Some reasons I decided to sell:

• 1) I jumped into this purchase during covid with no real financing in place for renovations. I'm a w-2 emplyoee and did not have a huge rennovation fund to cover the costs. Saving a percentage of my check to fund 20 - 30 K in a timely fashion was not ideal.
• 2)The house itself was in a hot location (Belmont and Lawndale) which is the main reason I bought it. However, the house itself was very old, odd layout and needed its share of repairs. I did not see it worth my time or costs to seek financing to repair as I could probably find a better deal that be worth the effort.
• 3) Lastly, freeing up that monthly loan payment is a huge relief and gives me. flexibility. Going forward I am going to niche down and plan my purchases in a much better manner (financing, lenders, rent/flip ARV analysis). All in all it was a great experience and to be honest it has only made me more eager to keep going.
• Being relatively new to RE investing (2nd Deal) it didn't help that I was managing this project from out of state. I learned a lot and eager to jump back into another flip opportunity ideally. This time I am much more measured in my approach. I would be happy to chat more about it - Tomas Saenz

Happy Friday,

I have been following BP on and off for the last few Years and this forum as well. Lot's of experience and smart folks on here. I am reaching for advice/tips/suggestions. My situation...

I purchased a short sale property in the Avondale Neighborhood a couple of years ago. Needless to say, I have been dragging my feet on the rehab of the property due to other projects/personal matters etc. however, no excuses it is time for me to put together a proper rehab project plan from A to Z including funding, rehab costs estimations, setting expectations for the work/milestones etc. The property is an older frame home that sits on a slab foundation. I have semi demo'd it however I am sorta stuck on where to start? I have not secured funding, established a proper project plan or design just yet. I would love to tap into this communities experience and ask how do you go about rehabbing a property? Do you have a check list, project plan charts? I am really starting from ground zero and my only experience was a rental duplex I rehabbed and flipped two years ago which turned out to be a solid deal/experience however I did sort of wing it. I want to do things the right way! any advice would be appreciated apologies for the long post. Thanks have a great weekend - Tomas Saenz