All Forum Posts by: Ty Coutts

Leveraging your equity through a HELOC or cash-out refinance can be a smart move, but it depends on your risk tolerance and goals. A HELOC offers flexibility and interest-only payments but can be risky with rate fluctuations. A cash-out refinance provides stable financing but resets your mortgage term. Since hard money eats into profits, consider private lenders, local banks, or partnerships for lower-cost funding. You might also explore BRRRR to build long-term wealth while recycling capital. If flipping, ensure margins are strong enough to absorb financing costs. Have you considered diversifying into rentals?

You're in a great position with strong equity and minimal debt, but to improve cash flow, consider leveraging strategically. A cash-out refinance on one rental could provide liquidity while keeping rates reasonable. Alternatively, using your HELOC to acquire another cash-flowing property, then refinancing that loan later, can be a smart move. If debt concerns you, look at DSCR loans, which qualify based on rental income instead of personal finances. Also, consider a portfolio loan to consolidate and free up capital. The key is ensuring any new debt enhances cash flow and aligns with your risk tolerance.

If you plan to keep your current home as a rental, a home equity loan or HELOC could help fund your new home's remodel while keeping your low mortgage rate. However, transferring your current home into an LLC may affect financing, as most traditional lenders require it to remain in your personal name for a home equity loan. Instead, consider a DSCR loan (based on rental income) or refinancing into an investment loan post-purchase. If DTI is a concern, rental income from the current home may offset it.

I work for Aslan who is licensed in 32 states, shoot me a DM or email if you'd like to talk further.

Given your low interest rates, refinancing isn't ideal, and traditional HELOCs may not work since these are investment properties. Look into DSCR loans, which use rental income for qualification, allowing you to scale without relying on personal income. Portfolio loans from local lenders may also offer flexibility. Seller financing or subject-to deals can help acquire properties with little upfront capital. Consider partnerships or private money lending to boost purchasing power. With $15-20K liquid, focus on lower-cost Midwest markets where down payments stretch further.

You're in a strong position with capital and a solid plan, but to scale next year without over-leveraging, consider the BRRRR strategy to recycle your capital. A HELOC or cash-out refinance on your current rental could unlock additional funds if interest rates improve. Joint ventures or private lending can help you acquire more properties while reducing personal risk. Exploring seller financing or subject-to deals can minimize upfront capital needs. Lastly, focus on high-yield markets or value-add properties to maximize cash flow and long-term growth. What market are you investing in?

You're welcome! Having your son involved in the loan, title, and insurance policy does have both benefits and drawbacks. One of the benefits is that being on the loan can help build his credit, which will be valuable for his future financial goals. It also means shared responsibility, making him a true partner in the venture and encouraging greater engagement. Additionally, as a co-owner, he would directly benefit from any appreciation, tax deductions, and profits from the property.

On the downside, being on the loan could impact his credit score, especially if there are any missed payments or financial issues. He would also be exposed to liabilities related to the property, such as lawsuits or property damage claims, which could affect his personal assets. Additionally, if he’s legally and financially tied to the property, it might limit his flexibility if he wants to make major life changes, like moving or starting his own investment ventures.

Ultimately, the decision depends on how involved you want him to be in the financial side of the property and how much risk he’s willing to take. 

Hey Natalie! 

Confidence comes with knowledge and action. To improve ARV and rehab estimates, network with appraisers, contractors, and use tools like PropStream and Zillow for comps. Attend open houses to understand market trends. For contracts, consult a real estate attorney and use standard assignment agreements to stay protected. Partnering with experienced investors can also provide guidance. Lastly, build relationships with cash buyers and hard money lenders early on—they'll be key to closing deals quickly.

Lastly, if you need help with a loan or want to talk, shoot me a DM or email!

Hi Shema,

It’s great that you’re expanding into land development and mobile home parks! For larger tracts, entitlement and zoning are key, so I recommend working closely with local planning and zoning departments early on to understand regulations and potential hurdles. You may also want to consider hiring a land use attorney or consultant to help navigate any zoning changes or entitlements needed for your mobile home park.

When sourcing land, focus on parcels that are already zoned for multi-family or manufactured housing, or at least close to it, to avoid lengthy approval processes. Look for areas with strong demand for affordable housing and check infrastructure availability like water, sewer, and roads.

Building relationships with local real estate brokers and connecting with municipal contacts can help uncover off-market deals and streamline your search. Finally, be prepared for long timelines and budget flexibility due to the permitting and approval process.

Good luck as you grow your portfolio! If you need any help with the financing, Aslan is beginning to offer the Chattel loan very soon which could be a great help. If you have any questions, feel free to DM me. 

Hey Michael,

Congrats on your first development project! For the GC selection, focus on experience with similar-sized projects and strong project management skills. Check references, and ensure they have a reliable network of subcontractors for specialized work.

Regarding whether to use one GC or separate them, the first option is more efficient for oversight, but it can come at a higher cost. If you opt for the second option, you’ll need to coordinate more closely with multiple subs, which could be time-consuming.

It's crucial to have a team member overseeing the project, even if you choose one GC. They should track progress, quality, and ensure the budget and timeline stay on course. Use tools like Buildertrend or CoConstruct to manage the project, track expenses, and maintain clear communication with the GC and subs. Regular progress meetings and budget reviews will help you stay on track.

Wishing you success with your development!

Hi Phil,

in Columbus, OH, some great places to network for deals including local real estate investment clubs like the Central Ohio Real Estate Investors Association (COREIA), meetups, and events hosted by real estate brokers or lenders. Additionally, you can check out local networking events or conferences, such as those hosted by the Columbus Chamber of Commerce or real estate organizations. These venues are great for connecting with other investors, property managers, and industry professionals. If you have any more questions especially having to do with financing these future projects, feel free to DM me.