Has Anyone Actually Used A HML For A Fix/Flip?
Hello BP,
I'm looking into using a HML for my first fix and flip since I don't have a lot of capital available. Ideally, I'd like to do a few of these flips in my hometown of Las Vegas or the New York Metro area, just to build up enough cash to purchase my first multi-family for cash flow. I've read a lot about these HMLs but haven't heard anybody talk about actually using them. I was wondering:
- What is a popular exit strategy?
- Is it possible to do a cash out refi after the rehab (assuming I have the credit for that) so that I can then hold the property as a cash flow?
- Is the proof of funds letter from, say, dohardmoney.com enough to hand to a realtor for them to start helping me find properties and put in offers?
- Every HML asks how much you have available. What am I expected to have in reserves?
- What are the total expenses of getting the loan closed and obtaining title, approx.? Assuming your HML will wrap most of these costs up into the loan?
If anybody could clear up some/all of these for me, I'd be very grateful. I'd like to start looking for properties ASAP but want to be sure I have whatever capital may be required, and fully understand how the payments work, as well as viable exit strategies. All I have learned thus far is that payments are usually interest only after X amount of months if you are still holding the property. @Darren Sager Any experience using these to obtain or fix and flip duplexes?