All Forum Posts by: Tom Horan

Looking for advice on creative financing. Here’s the situation:

Seller has a mortgage on her property of 98k remaining. Wants to sell the property and is very motivated. She also needs 100k to pay back some other borrow money. If she sells soon, she would also qualify for primary residence capital gains exclusion (it’s been a rental for the past 2.5-3 years.

She’s looking for a purchase price of 560k, home needs about 20k in work, but it’s worth about 620-650 after repairs. I’d buy and hold this property and know it’s a good long term investment property and neighborhood.

Any advice on how to make this work for everyone? Id like to do an owner finance situation, but a little thrown off on how to structure with a current mortgage in place, and the sellers need for cash soon. Obviously I’d like to have as little money in the deal as possible, while also acquiring a long term asset.

Any thoughts and advice are appreciated.

Hi Folks - I own 3 properties in Denver metro (one is a primary residence) and I’m wondering if there are pros to refinancing the three notes into one? Also wondering how difficult this process is? I guess my mind-set is if I have 3 properties with a local credit union or similar, I could build a stronger relationship for future deals. Thanks for the guidance.

@Joseph Firmin

My lender is pushing back a bit. What are the differences between closing a refi in my name versus closing on a refi in an LLC name? Are these entirely different types of loans?

@Joseph Firmin

I don't think there would be an issue. When refinancing in the name of an LLC, the lender would still be looking at the same finances qualifiers correct?

Hi Folks -

I own a single family home with 25% equity in it. Original loan was an owner occupied loan and looking to get the property out of my name and into an LLC. I also want to refinance the property. What makes the most sense - refi first or put into an LLC? Trying to keep in mind the due on sale possibility as well. Thanks for the advice.

Hi folks - 

We have a property that we currently pay PMI on (first home 2.5 years ago). This summer we should be in a good position to drop PMI as we are likely between 75-80% LTV.

We're also looking to open an LLC for this property and get it out of our names.

Is there any reason why one should be done before the other? I wouldn’t think it would be a big deal either way, but want to check in with my BP people.

Thank you in advance! 

@Mike M. Thanks for the input Mike!

@Julee Felsman Thank you for the input. Will likely hold off on trying to purchase another owner occupied for a little bit. Refinance is worth it right now with the interest rate drop from last year.

Hi Folks - I’ve looked at quite a few posts but nothing seems to answer my question. I live in Colorado if it matters at all.

House 1: SFR purchased with owner occupied conventional loan 2.5 years ago.

House 2: SFR purchased with owner occupied conventional loan 1+ year ago.

Scenario: I want to refinance House 2 to a better interest rate. If I refi now as an owner occupant, are there lender/legal expectations that I stay in that property for any duration? Looking to potentially purchase House 3 in 4-5 months with owner occupied financing again and want to make sure I'm not shooting myself in the foot by refinancing House 2. DTI will be fine - I'm not worried about that - more so the legalities of this strategy. House 3 will also likely be conventional financing with 5% down.

Thanks in advance for the advice. 

Hi Folks - I am looking to purchase a property as an owner occupant (either low money down conventional, or FHA). I am hopeful to purchase a property in the next 3-4 months.

There is an outside chance that in the initial year of being an owner occupant, my full time job will relocate out of state. Would this be considered a qualifying event to no longer occupy my property and rent it out? I’m assuming so, but wanted some confirmation.

The relocation is very hypothetical at this point and I don’t want a job relocation to slow down my plans to purchase a home.

Thanks in advance.