All Forum Posts by: Torrell Palmason

The best way to get your money back out of the deal is to BRRRR. Find a place in need of some rehab, purchase the deal on hard money so that you can force appreciation with the rehab, then you will cashout refinance into conventional or non-QM. The After-Repair-Value will determine how much of your money you will get back out of the deal.

This was a real quick and brief overview if you have any specific questions or just want to know more feel free to reach out :)

Best of Luck!

I'm up a little more north in Lewis County but if you want to go to a Investor Group in Vancouver look up REVIN on Facebook. The group is full of knowledge and lots of opportunities.

If you have any questions feel free to reach out.

Best of Luck!

An Owner Occupied HELOC you should be able to get anywhere if you have a trusted lender you can go through them and they will either have the HELOC or know a Local Bank that you can go through. Personally I recommend a Credit Union as they are generally much more competitive.

The process is pretty quick and simple. Apply for the HELOC through your preferred Lender, I'd recommend looking for one that won't require an appraisal unless you don't like the value they come up with for your home. After that you'' submit a couple Income docs and clear up any conditions that come up. If there is no appraisal that will be the whole process besides signing, Mine has taken 2 weeks and I'm all done.

Best of Luck!

If you are going to pull out the equity for investment purposes I would advise looking at a HELOC as well as a Cash out.

The Cash out will have a higher rate and payment than your current mortgage but you get a lump sum of Cash. The Max Cash out on a Owner Occupied Fannie 2 unit is 75% LTV. This can be very useful for down payments or quick projects.

A better strategy I think is getting a HELOC which can go up to 90% LTV, rates are adjustable but you will only be paying on what you actually use, leaving your mortgage at your current rate. Once you have placed your down payment on the next property you can begin paying off the HELOC so that it can be used again and again for a Owner Occupied HELOC the next 10 years.

Depending on what you are wanting either option is good but in my opinion if you wanting to use the cash for Investing the HELOC is the better route. 

Best of Luck!

An option for purchasing with an LLC is Non-QM. These types of loans can be done in the name of an LLC with a personal guarantee. Non-QM products include Full Doc, 12-24 month Bank Statement loans, DSCR, Asset Depletion and others. Choosing a product will come down to what your partners and your Loan Officer work through as the best scenario for you.

Other options are Fannie Mae which allows you to buy personal and switch title into an LLC after closing or Commercial loans.

If you have any questions feel free to reach out and I will address any concerns you may have.

Best of Luck!

The cash-out limit of 70% LTV on your Duplex will not take into consideration the Equity taken out on your primary. You will receive the 70% cash-out on your refi regardless what was used for your down payment.

Best of Luck!

If you move it to the LLC prior to refinancing you will have to quit claim yourself back onto title if you use a conventional loan. I would advise you to wait to move it to the LLC until after you refinance. Fannie Mae will allow you to switch it to your LLC after closing without triggering the Due on Clause that can pop up with other loans.

Another option is to go to a Non-QM loan which will allow you to close the loan with an LLC.

Best of Luck!

A downside with the 203K is the process is very arduous and one of the requirements is you get contractors bids for all the work, as you are not allowed to do your own work on the home. Also this will go through double underwriting and if the renovation is $35,000+ you must also have a FHA Consultant. If this is the route you choose then I would highly suggest doing your homework and find a lender very familiar with the process so they can truly guide you through the process.

Another style you can take is a 1-4 unit FHA loan for 3.5% down that will pass an appraisal but needs updated. Once the property is updated you will have built up equity so refinance out of the FHA and depending on how much equity was built up take out a Cash-out refi or a HELOC to get what you put in back or to reinvest for another venture.

Best of Luck!

Reinvesting is a great strategy to get your money to go a bit further. There is no right answer as ROI is very much dependent on each property.

An option you didn't but that could be very useful to you is if you do a HELOC instead of a Cash-out Refi. With the HELOC you will only being paying on what you use. If you find a 1-4 unit you want to purchase but the down payment is only $50k you only pay interest on the $50k used rather than on a Cash-out you will raise the rate on the property above that of a Rate and Term Refi and pay for the full $80k you pulled out at closing.

Best of Luck!

FHA will be able to close in the same amount time as a Conventional. The loan loan limit for FHA in Richland County for a 2 unit is $538,650, I am not super familiar with the market in Columbia but with a quick look on Zillow I saw a couple of Duplex's well within that price range.

Best of Luck!