All Forum Posts by: Travis Sperr

 I love this app - easier than getting up and walking to the office scanner!

@Tyler Stephens I haven't rented to someone coming from out of town - so collecting check or cash hasn't been an issue. Tons of apps out there to collect a fee (Venmo, Paypal, etc) including free or inexpensive options from banks. I would be less worried about the $25 in this situation with the amount of fraud that comes from any "out of town", but if your diligence to this point tells you they are a real and a good fit than figure it out with them.

Dontget caught up in a receipt you can send an email that says you received the money. 

@Chris Hernandez it is possible to immediately refinance but will need to meet the lenders guidelines. The term is "delayed financing" - Fannie Mae will do this with no title seasoning- you will have to check on LTV. Your lender told you that Fannie and Freddie don't finance this property type - very important for you to understand if this is your lenders "bank overlay" or a real restriction by F&F. I would first ask if it is an overlay and if they say it is not - ask for the section of the "Fannie or Freddie selling guide" that prohibits this. The selling guide you can download on their respective sites for free and verify what you are being told - you may find that it is an overlay and a direct fannie/freddie lender can do the loan.

If it all checks out and is prohibitied, contact buyers agents of like property in the area for like type property and see how the units were financed that will give you warm leads to your financing need. If you need to cash out with a bank the seasoning requirements may hurt your timeline to get your cash back out.

I hope that helps - Good Luck!

@Tyler Stephens for an application I would just email - have them scan and return via email. 

A local bank likely will not lend on a property in another state - you would either need a national lender or lender local to the vacation home in order to get a loan on that property.  I would take the longest term possible, probably going to be less than 10 years, 3-7 more typical.  Keep in mind you may get a 7 year term on a 20 yr am - which would increase payments and decrease cash flow accordingly. 

 That hasn't been my experience - I have bought and sold a lot of properties receiving the title docs via email with a return overnight label. I have a notary in my office, execute docs and send them back to title. You are in the industry so I am sure you have examples of it not working out. Of course, the lender or title could have the requirement of title professional presenting the package that just hasn't been my experience. 

You are not able to personally benefit from your IRA - which is why this doesn't work.

@Danny N.

1)pretty typical to get a cash out refinance or line of credit against the rented properties at 70-75% of current value. Income will be documented from tax returns but won't play a big part in the value assuming they are all 1-4 unit properties. The land becomes more difficult to get cash out on, probably closer to 50% of value (if there is even an appetite for the loan). You will be more in the $350k range for a loan assuming the bank will lend on the land.

2) income will be verified on taxes so if you are not reporting the cash as income - it will kill your DTI and could create an issue.

3) see number 1 for LTV constraints

4) DTI will be difficult without taxable income that can be documented - likely created an issue. 3 houses that don't create income will heavily offset those that do.

You will need a local bank to look this loan for you- Chase won't want anything to do with it. 

@Salvatore Tardio NWR has a presence in my market  - not to say that it can't work, I just strongly encourage you do your own due diligence on values and repairs. Keeping in mind they have a vested interest in you buying their property and using their financing, it can be a conflict of interest. Shop a few lenders to make sure you are not only getting fair pricing but also someone who can add value to the transaction after it is closed and you are on the hook.

They often want you to move quickly with a none refundable deposit, which makes perfect sense in a competitive market, but is not always conducive to doing your homework.

@Chris Chappell a quick conversation with you custodian will answer these questions. If your IRA participates in the deal, it is my understanding it would need to have ownership equal to the capital contributed and with the IRA on the title the loan would need to be non-recourse - further complicates things before also exploring ubit.

If you are doing this all in "cash" using the SDIRA - then you are not able to refinance that money back out taking title in your personal name the long hold - tax laws. But you could refinance into a loan to you SDIRA, again non-recourse, keeping the SDIRA on title and all profits going back to the account. The lower loan to values might require you to leave money in the deal - so you would be limited by the lender and size of account.