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I don't qualify for a HELOC since my investment property I don't live in. My current residence is in the process of transferring title but the mortgage will still be under my sister's name to keep the low rates.
I can take a personal loan but it max is about $30k.
Seems like selling my stocks or doing a cash out refi are my only options? Unless someone here can find another way for me to get the $100k?
I really don't want to sell my stocks since they're going up. Especially BABA which is going to be the next Amazon. But again, the economy can crash any time soon?
I'm self-employed which lenders don't like. I also take a ton of deductions and write a couple of expenses which lowers my adjusted gross income. Which lenders really don't like.
It's a franchise that has been growing in sales for the past 3 years. Increase of over 100k each year. They made 900k in sales last year and are looking to do 1 million this year.
For my part, I will be a silent investor, I don't have to do anything but just wait for the check to come in the mail each month.
This will between 3 investors splitting the profits 3 way. Payments will be made quarterly.
If the sales are as good as the 1st location, I can make my money back in about a year and a half.
It's a franchise that has been growing in sales for the past 3 years. Increase of over 100k each year. They made 900k in sales last year and are looking to do 1 million this year.
For my part, I will be a silent investor, I don't have to do anything but just wait for the check to come in the mail each month.
This will between 3 investors splitting the profits 3 way. Payments will be made quarterly.
If the sales are as good as the 1st location, I can make my money back in about a year and a half.
If you were going into this on a full time basis I would be a little concerned form the information you gave. Probably vote a no.
Since you are a silent partner, my vote is no, skip the deal.
I don't qualify for a HELOC since my investment property I don't live in. My current residence is in the process of transferring title but the mortgage will still be under my sister's name to keep the low rates.
I can take a personal loan but it max is about $30k.
Seems like selling my stocks or doing a cash out refi are my only options? Unless someone here can find another way for me to get the $100k?
I really don't want to sell my stocks since they're going up. Especially BABA which is going to be the next Amazon. But again, the economy can crash any time soon?
I'm self-employed which lenders don't like. I also take a ton of deductions and write a couple of expenses which lowers my adjusted gross income. Which lenders really don't like.
Any advice, suggestions, let me know!
Who are you transferring title to in the current residence and why does your sister have a mortgage on your residence? If you own it, what's it worth and what's the equity in it?
How much do you have invested in the market? All in individual stocks? Are they diversified?
Taking a ton of deductions (which are also commonly referred to as expenses when you're self-employed) isn't a problem unless it eats up a lot of your gross income, then lenders usually have a problem with them. I don't know how you write an expense, but again, if this is leaving you with little net income from being self-employed, maybe you don't have the cash flow to support a loan.
Ton of other things to know before I would even entertaining advising on how to fund (let alone whether your should fund) this kind of investment. How old are you, how much do you make, what are your other investments/savings, what do you need in retirement, can you afford to lose the investment, etc. etc.
Who are you transferring title to in the current residence and why does your sister have a mortgage on your residence? If you own it, what's it worth and what's the equity in it?
How much do you have invested in the market? All in individual stocks? Are they diversified?
Taking a ton of deductions (which are also commonly referred to as expenses when you're self-employed) isn't a problem unless it eats up a lot of your gross income, then lenders usually have a problem with them. I don't know how you write an expense, but again, if this is leaving you with little net income from being self-employed, maybe you don't have the cash flow to support a loan.
Ton of other things to know before I would even entertaining advising on how to fund (let alone whether your should fund) this kind of investment. How old are you, how much do you make, what are your other investments/savings, what do you need in retirement, can you afford to lose the investment, etc. etc.
I bought the house from my sister. So the house is under her name but going to transfer to my name. The mortgage will be under her name still since the rate is very low (3.25%) I'll just pay the mortgage. And give her cash for the difference.
I have over 100k invested in the market with 5 stocks.
On paper, no I don't have the cash flow. (not a lot that is after all the deductions) But I do have cash flow.
For the cash out re-fi, I will be doing it on my 4 unit rental apartment. Which I own and is under my name.
In the past I have been able to take cash using a margin account against my stock holdings. That was years past when margin rates were relatively cheap but I don't know what they are now.
(in fact I used margin to finance my house and all consumer spending back then but times have changed.)
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by taimaishu
I bought the house from my sister. So the house is under her name but going to transfer to my name. The mortgage will be under her name still since the rate is very low (3.25%) I'll just pay the mortgage. And give her cash for the difference.
I have over 100k invested in the market with 5 stocks.
On paper, no I don't have the cash flow. (not a lot that is after all the deductions) But I do have cash flow.
For the cash out re-fi, I will be doing it on my 4 unit rental apartment. Which I own and is under my name.
I'd look at the cash out of your 4 plex. Do you own it free and clear? How much equity do you have in it? The problem is that they are still going to want you to show income because they will use it to figure your dti. If you use the rental income they will want to see it on your tax return. There's also the part where they will lop,off 25 percent off the top probably. If you don't show cash flow on your tax return you are probably not going going to get the cash out.
Maybe you can get a loan using your stocks as collateral?
One final note, will the transfer of title on your sister's house trigger a due on sale clause?
I'd look at the cash out of your 4 plex. Do you own it free and clear? How much equity do you have in it? The problem is that they are still going to want you to show income because they will use it to figure your dti. If you use the rental income they will want to see it on your tax return. There's also the part where they will lop,off 25 percent off the top probably. If you don't show cash flow on your tax return you are probably not going going to get the cash out.
Maybe you can get a loan using your stocks as collateral?
One final note, will the transfer of title on your sister's house trigger a due on sale clause?
I agree with this advice. I would however be cautious about a margin loan if you chose that route. You didn't give the full value of your holdings but a temporary dip in the market could create a margin call quickly forcing you to sell when prices are down.
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