Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
13y
Hi Anthony, I've seen equity split lenders before. They had a 6 month max length of deal or the PM would _loose the property_. IE the quit claim deed was signed at the beginning of the project and the PM would loose all their work etc.
Ok I found on their website:
- Ability to extend up to a year ( if property unsold in first 6 mos)
It's certainly going to cost you if you don't have this sale closed in 6 months.
To new folks, flip and fix is one of the most risky real estate strategies especially as it gets to be mid summer and the buyer swoon happens in the Aug / Sept timeframe, through winter to pick back up in March. Interest rates are ticking up, you could get stuck with a property you can't sell. Go to the fix and flip forums and ask.
6 months goes buy quickly and this includes the time the buyer's bank needs to close which can be 60 days, or it falls through and you have to find another buyer. I've heard of quick fix and flips taking 9 months to get closed. Just offering cautionary views.
Investor · Everett, MA · Member since 2013 · 229 posts · 15 votes
13y
Hello Anthony --
I would be considered a "newbie" and noticed your site primarily promotes a 100% financing after rapport is established. Do you work with finances that come from unsecured business lines of credit?
New to Real Estate · Saint Petersburg, FL · Member since 2012 · 153 posts · 13 votes
13y
Anthony Dadlani What a fantastic program you have here, just a couple of questions. To qualify for the 100% purchase price only financing, do you need to have a track record of 3 properties as well?
Additionally, what is your criteria for properties in the Atlanta area? What kind of general track record/ experience do I need to have to work with you? Or does the approval mostly weigh on the quality of the deal? Thank you.
Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
13y
Hi Anthony, I've seen equity split lenders before. They had a 6 month max length of deal or the PM would _loose the property_. IE the quit claim deed was signed at the beginning of the project and the PM would loose all their work etc.
Ok I found on their website:
- Ability to extend up to a year ( if property unsold in first 6 mos)
It's certainly going to cost you if you don't have this sale closed in 6 months.
To new folks, flip and fix is one of the most risky real estate strategies especially as it gets to be mid summer and the buyer swoon happens in the Aug / Sept timeframe, through winter to pick back up in March. Interest rates are ticking up, you could get stuck with a property you can't sell. Go to the fix and flip forums and ask.
6 months goes buy quickly and this includes the time the buyer's bank needs to close which can be 60 days, or it falls through and you have to find another buyer. I've heard of quick fix and flips taking 9 months to get closed. Just offering cautionary views.
Investor · New York City, NY · Member since 2013 · 1k+ posts · 269 votes
13y
Hello Justin Morris,
Atlanta is a beautiful city and I tend to visit there quite often myself.
I'll answer your questions in order.
To qualify for the 100% purchase price only financing, do you need to have a track record of 3 properties as well?
No, that is the reason we have this program as a starter/stepping tool.
As you can imagine from our point of view, we are taking on risk by partnering with a new Project Manger. We want to insure that the work ethic and commitment to a project is there. They only way for us to insure that is to have the PM have some "skin" (capital) in the game. Hence, this structure will allow most of the cost of the project to be financed by us, and yet allow newbies or part time flippers to be able to take on a project with a smaller capital investment.
Additionally, what is your criteria for properties in the Atlanta area?
We are looking for projects where the math makes sense. As a flipper your target profit margin should be in the 25%- 40% range. Too much profit and the property wont sell fast enough. Too little and its not worth the time/effort. You have to find a sweet spot.
What kind of general track record/ experience do I need to have to work with you? Or does the approval mostly weigh on the quality of the deal?
With the 100% Purchase Finance Option you can be brand new without a track record. But please bear in mind that any type of real estate strategy bears risk and even more so with someone brand new. We hope you have done your homework and have the right contractors in place, crunched the numbers on their estimates and done your due diligence.
I look forward to working with you in the future and please dont hesitate to run a deal by us. Would be happy to analyze with you.
Investor · New York City, NY · Member since 2013 · 1k+ posts · 269 votes
13y
Hi Curt Smith,
Yes I am sure there are many programs each with their own pros and cons.
Yes you are also correct in the quit claim structure. As mentioned on my previous post, working with new project managers is a risky venture in itself. One of the ways we reduce the risk on our part is to make sure the manager has some sort of capital investment in the project themselves. Whats to stop someone from walking away when faced with hurdles if there is no risk on their part.
The project manager is selecting the property, hiring and choosing the rehab/contractor team, and marketing and selling the property either with agents or themselves. We are simply acting as a financial partner and to insure we are able to get our capital back in the event the property is not completed correctly, does not sell, or for any other reason we need the option to take it over and liquidate it. Of course this would be the last resort, and we would much prefer to work with the PM on agreed terms. We are looking for repeat partners so our goal is not to burn any bridges whatsoever.
6mos is a reasonable amount of time to perform light remodels and cosmetic changes, market and sell the property. There are times it takes longer and hence we offer extensions for a fee. 1 year is a long amount of time, and we will reserve the right to take it over at that point. We may choose not to exercise that right however.
Hope this shed some more light on the topic and structure.
Always happy to discuss or answer any questions. Once again we are looking for long term relationships.
Investor · Everett, MA · Member since 2013 · 229 posts · 15 votes
13y
Curt Smith Great info provided. It is much appreciated especially for a newbie to real estate investing in terms of wholesaling, rehabbing, etc..
Anthony Dadlani Ive submitted a project via http://www.aplusrealestateintl.com/submit-property please review and get back to me at your earliest convenience.
John Rubino Is your firm willing to invest in the Providece, RI area??
Lender · Burke, VA · Member since 2013 · 177 posts · 28 votes
13y
Jensen,
I'd be very interested. Are you currently involved any projects? How many have you done to date? I will email you some info about my company. Talk soon.