All Forum Posts by: Ty Coutts

Hey Oliver,

To reduce the high interest rates on your commercial loans for single-family houses in upstate NY without changing the loan terms, consider these steps:

1.Negotiate with Current Lender: Highlight your good payment history and compare rates from other lenders to negotiate a lower rate.

2. Explore Loan Modification: Request a rate reduction or modification from your current lender based on improved property performance.

3. Look into Government and Local Programs: Check if you qualify for SBA or local economic development programs that offer lower-rate refinancing options.

4. Shop Around: Compare rates from other commercial banks, credit unions, or online lenders to find competitive offers.

5. Consult with a Financial Advisor: Seek advice to navigate negotiations and explore refinancing options that best fit your needs.

By taking these steps, you can work towards lowering your interest costs while keeping your loan terms unchanged. I am a Loan Officer so if you would like to explore options, or if you just want to discuss, feel free to reach out to me directly!

Hello David,

I use Broker Plus as a loan officer, it's great and very intuitive. 

Hi Justin, you have a complex financial situation, and your questions touch on detailed aspects of how capital gains and 1031 exchanges are treated in mortgage underwriting. 

Use of Year-to-Date Capital Gains in Income Averaging:
Fannie Mae allows for capital gains to be considered as qualifying income if it is recurring and consistent. Typically, underwriters will use an average of the last two or three years of filed tax returns to determine this income. Year-to-date capital gains can sometimes be included, but this depends on the consistency and nature of the gains. The underwriter will need to see proof that these gains are consistent with past income and not one-off events. If you can demonstrate that your year-to-date capital gains are in line with previous years and you have documentation to support this (such as brokerage statements and tax records), an underwriter might include it in the income average.

It's crucial to work with a knowledgeable mortgage broker or loan officer who understands your unique financial situation and can navigate the complexities of underwriting capital gains income and 1031 exchanges. Comprehensive documentation and a clear explanation of your investment strategy will be key to securing the HELOC. I would love to speak over the phone to answer questions or discuss the HELOC and if I can help. Please don't hesitate to schedule a time using the link below.

https://calendly.com/tycoutts

Hello Hunt Van Winkle,

Banks typically lend with a maximum LTV ratio of 75% for several reasons related to risk management, regulatory requirements, and financial stability. Although, there are a few ways to get that number up. I've found some lenders that will go up to 80% sometimes, but I think your best bet might be a government-backed loan if you want such a high LTV ratio. I am loan officer licensed in NC, so if you are interested in speaking on the phone to really discuss your situation, please do not hesitate to schedule a time to talk using the link below.

https://calendly.com/tycoutts

Hey Ammar,

Yes, you are correct that owning and actively managing rental properties can qualify you for real estate professional status (REPS) under IRS rules. To qualify, you generally need to spend more than 750 hours per year on real property trades or businesses in which you materially participate.

Activities such as self-managing, handling tenant needs, monitoring security, and overseeing property maintenance all count towards these hours, even after all units are rented out. Keeping detailed records of your time spent on property management tasks is crucial for documenting your eligibility for REPS. Consulting with a tax professional can help ensure you meet all IRS requirements and maximize your tax benefits. Hope this helps. Feel free to reach out to me directly if you have any questions/want to discuss further. 

Hey Brett,

Dumpster Rental Options:
Dumpster Size: An 11-yard dumpster is suitable for a 750 sqft unit remodel. It typically holds about 3-4 pickup truck loads of debris. For comparison:

10-yard dumpster: Holds approximately 3-4 pickup truck loads.
20-yard dumpster: Holds approximately 6-8 pickup truck loads.
Depending on how much debris you estimate (6 doors, carpet, flooring, old trim), an 11-yard dumpster might be sufficient.

Cost Considerations: Dumpster rental costs can vary widely based on location, duration of rental, and the company you choose. $400 for a 2-day rental of an 11-yard dumpster might seem high, but it’s important to consider what’s included (delivery, pickup, disposal fees) and whether there are any weight limits.

Alternative Options:
Bagster Bags: These are large, disposable bags that you fill with debris and arrange for pickup.
Junk Removal Services: Some companies specialize in hauling away specific types of debris. They may charge based on volume or weight.
Local Waste Management: Check if your local waste management authority offers bulk item pickup or special services for construction debris.

Let me know if you have any other questions. My DMs are always open, so feel free to reach out! Hope this helped. 

Hey Farhan

Incentives available in New Jersey: SREC-IIs (Solar Renewable Energy Certificates) and the federal Investment Tax Credit (ITC). 

Financial Incentives: The SREC-II program in New Jersey provides financial incentives based on the amount of solar energy your system generates. This can significantly offset the upfront costs of installing solar panels. Additionally, the federal ITC allows you to deduct a percentage of the cost of installing a solar energy system from your federal taxes.

Long-Term Savings: Solar energy can lead to substantial long-term savings on electricity bills. Once installed, solar panels typically have a long lifespan (25 years or more) and require minimal maintenance. This stability can provide predictable energy costs for your properties.

Environmental Benefits: Utilizing solar energy reduces your properties' carbon footprint, contributing to sustainability goals and potentially enhancing the appeal of your buildings to environmentally-conscious tenants.

Regulatory and Permitting Considerations: Make sure you understand the local regulations and permitting requirements for installing solar panels on multi-family properties in New Jersey. This can affect the installation timeline and overall project costs.

Ultimately, solar energy can be a beneficial investment for multi-family properties, particularly in states with favorable incentives like New Jersey. If the financial analysis, including incentives and long-term savings potential, aligns with your goals, investing in solar could be a prudent decision. Feel free to reach out if you have any other questions. Hope this helps!

Hey Ty,

Great to have you here! I am a mortgage broker in CO but licensed in Colorado, Arizona, Arkansas, California, Florida, Kansas, North Carolina, Tennessee, Texas and Wyoming. If you have any questions or just want to talk feel free to reach out to me directly.

Hi Mohan Deep, 

General Rule: A fixed-term lease typically expires automatically at the end of the lease period without the need for a notice to vacate unless otherwise stated in the lease agreement.

For fixed-term leases, if no notice requirement is specified, they typically expire automatically.
If your lease requires a two-month notice to vacate, you must provide this notice even at the end of the lease term. Always review your lease agreement and consult local laws to ensure compliance with all regulations. I hope this helps!

Hi Carrie Whisel. Securing the necessary funds for rehabbing a fixer-upper for your future primary residence can be done through several methods, each with its own advantages and considerations. There is a lot more information to consider regarding the best way to secure a loan and finance your home. 

Simple answer: If your current mortgage rate is favorable, a HELOC can provide flexible access to funds as needed for the renovation.

Although, there are some different ways to get creative with your situation which I am happy to explore with you, as I am a loan officer. If you would like to discuss further, please schedule a time to chat using this link: https://calendly.com/tycoutts