All Forum Posts by: Tristan Colborg

Cleveland doesn't actually license GCs. 

@Lauren Koon I think there needs to be more info provided. What is your current mortgage rate at? Has there been any appreciation of the current property? How long do you plan to be in the property?

I used this guy before he did good work but could be a little brash. 

https://www.daves-electric.com

Originally posted by @Andrew Postell:

@Tristan Colborg below is a screenshot of part of the form where it speaks to the "rental income" only.  I removed the addresses but this is the form you need to get the rental value, meaning no 2 months of rents received needed.  This along with the lease is all that is required....now your lender could have an "overlay" to all of this but this is all that Fannie/Freddie require

 I did reach out back to the lender on this Andrew I sent you a PM with his response just don't want to put to much info here. 

 So just for clarification form 1025 is filled out in addition to a normal appraisal and is used to qualify rental income? Has this changed at all since covid 19? I looked over the form and it almost looks like an appraisal form that they would use to value the property. Sorry I just want to make sure that if I reach back out to the lender I have an understanding of what I'm referring to.

 Andrew can form 1007 be used on multi unit properties as well or just single family? 

@Andrew Postell I recently started trying to finish the Rate/Term refinance and a property that I tried this strategy on and ran into a couple obstacles I thought I would share.

I filed a mortgage on the property with me as the mortgagor and the LLC as the mortgagee, just like you talk about in this forum. However, when I set up property management the rent payments go into my business (same LLC) account. I was told that underwriters right now are not just taking signed leases but need to see actual rental deposits on bank statements, otherwise they can't count rental income.

Additionally I was told that they can only count rental payment towards covering PITI but not the excess.

The lender I am working with also said that underwriters may ask to show payments have been made to the LLC as per terms of the mortgage.

it is looking like it may be harder to pull this off with out having everything set up perfectly. I may just need to file a satisfaction of mortgage and just do the cash out refinance at 70%LTV on my 3 unit versus the 75% this strategy was going to allow.

@AndrewPostell

Question for you on this strategy. I purchased a property using a HELOC from my primary residence. Upon purchase I had my title company file a lien on the property for my LLC with the 0% 12-month term. I'm now looking to do the rate term refinance but do have a question. Because I used the HELOC from my primary residence, which is what I want to pay back with the new loan, the monthly payment on this will be included in my DTI correct. Because according to the lender the new loan is going to be used to pay off the lien/loan from my LLC not the HELOC correct? I'm trying to make sure I understand this correctly and want to give myself the best opportunity to be approved. Thanks in advance.

 Yes I got estimates from both my agent and my PM company. Now we will see if we get those estimates. Lol

 Thanks!