All Forum Posts by: Adam Elbary

I am having a hard time finding a #hardmoney lender to fund 90% LTV and 100% rehab since i have no experience, I currently have 20k liquid, but might have access to other funds (private money) to help fund the deal and holding costs.

Question #1

Would anyone with flipping experience be interested on partnering on this ?

Question #2

Any referrals for Hard Money lenders in Florida that are wiling to work with a newbie flipper offering decent terms? maybe even willing to put closing costs towards the loan ?

Question #3

How do you usually fund/pay for your holding costs?

Question #4

Is there any other variables I should be considering for this being an off-market wholesale deal ? and do i need a buyers agent ?

thanks alot in advance for anyone willing to help!

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Orlando, Florida

Originally posted by @Adeva Edobor:

@Adam Elbary You may be getting that response from lenders because of experience requirement. Lenders like to see at least 1 other investment in your portfolio to go that high on the LTV if you plan to go the DSCR route which means you are using the rents from the property to qualify.

That is what i'm seeing now, are you familiar with having a seasoned investor with those requirements sign as a "Guarantor'' on the loan to get qualified and secure the funding as a newbie investor?

It doesn't make complete sense to me but a lender i spoke with had mentioned it.

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Originally posted by @Timothy Hero:

Non-qm/DSCR lenders will require 20% down only if it cash flows to cover the mortgage. Most are currently wanting a DSCR of 1.1+. In other words, will the property rent for at least 10% more than the PITI?

Great info, I wasn't clear on their requirements/guidelines regarding that.

Appreciated!

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Thanks for the replies everyone, Very helpful!

Actually was able to get a 20% down DSCR loan Pre-Approval from a lender I work with.

Not positive exactly which product/structure he used to come up with it, but I will update the post once I have that info!

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Hey there everyone, first time investor here starting my journey for long term buy and holds in central Florida!

Im having a difficult time with the lenders ive been dealing with. Here's the jewel of it.

My partner and I are looking to get financing on a Tri-plex in Central FL, we will be splitting the down payment.

We'd really love to get into the property with 20% down max if not less, most conventional lenders ive spoken to have said they cant get anything under 25% on an investment property, But I'm determined to find one that can. whether it be DSCR/Rental loan, conventional or whatever products are available to fit with our goals and criteria while stilling giving us some scaling capability as were not looking to stop at this property, hopefully 2 more multifamily properties to acquire in the next year to 18 months!

Would appreciate any lender referrals, insight or different approaches anyone might suggest!

Pretty excited to interact with the BP community and grateful for everyone on here trying to help up and coming investors like myself.

Thanks a lot in advance everyone! #TakeAction

1 Vote

Originally posted by @Gabriel Miritello:

@AdamElbary what a great way to estimate!! Allows the owner to better estimate a home beforehand. Man that's awesome. Is that technique common? I'm trying to improve my initial estimates before I waste an electritians time. Is this standard practice or are there other ways electritions provide basic estimates?

Im not too sure if thats a universal way of estimating, some go by length of wire needed, etc..

thats just a base line, alot of people use that here in florida, but thats even on the high end, if you use that formula with the $248, its highly unlikely for the actual estimate to be higher!

so yes, you could use that to get a rough "Pre-Estimate" before calling out an electrician!

1 Vote

Originally posted by @Dana Dietz:

Hi, I have recently landed in a position where I am able to work on my dream and build my retirement, by getting back into real estate investing. My goal is to build a BRRR portfolio, but I need to build up my cash reserve so I was going to fix n flip in the mean time. But I'm also learning about OPM. I have some contacts for private and hard money lenders, that I got from my local REI meetings, but I haven't reached out yet because I don't have a property to pitch them at this time. Or should I connect first with lenders before finding property?

Thanks,

-D

I am also stuck where you are!

and when i go to the lenders application, most of the time its asking for a property, i dont have one yet since i have no idea what i qualify for.. kind of putting me in the analysis paralysis zone, im stuck in limbo because im not sure what my next steps should be considering the lender aspect.. is it pre-aproval,THEN the property hunt? or find a good property then get pre-approved for it?

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Originally posted by @Gabriel Miritello:

The Home is in Savannah, Ga

I am an electric and plumbing contractor in Florida, shouldn't be a huge price difference from my area to GA.

our pricing is 248/drop

so count every (Light switch, outlet and fixture (lights etc) ) and multiply that by 248

so #of drops X $248 = total for rewire

then add about $5,000 for the panel and that will give you a pretty good idea where you should stand, after that give or take $1500 and that'll give you a range!

hope that helped any!

3 Votes

Hey Jonathan, looks like a sweet deal!

I'm a rookie investor looking to land my first deal here pretty soon, im curious..

how come you went the commercial loan route? what prompted you to take that approach? and how did the numbers and loan structure look for that?

I'm currently having a somewhat of analysis paralysis trying to figure out which way to finance my first deal, maybe i can get a different perspective from your answer! thanks!

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ANYTHING written by Brandon Turner is GOLD!

try "Investing In Real-Estate With No or Low Money Down" by Brandon Turner, amazing book so far and fits right in the category you're asking a question about! hope that helps.

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All Forum Posts by: Adam Elbary

Adam Elbary has started 2 posts and replied 11 times.

Post: First Fix & Flip, Would appreciate all the help i can get.

Post: Does lending really have to be this difficult?

Post: Does lending really have to be this difficult?

Post: Does lending really have to be this difficult?

Post: Does lending really have to be this difficult?

Post: Electrician Estimate - seems very high

Post: Which comes first, the property or the lender?

Post: Electrician Estimate - seems very high

Post: 2 family buy and hold in AYER MA

Post: Vet Student & rookie investor in Tucson looking for guidance