All Forum Posts by: Adam Farag

What's an example value? What type of LTV are you looking for? Is it a rehab project or turnkey?

Aaron - I just sent you a request. Let's talk tomorrow

Alison - I have a guy for you to talk to named Greg Jones with Assurance. They deal primarily with investors. Will get you a good deal. I will PM you.

Dan - Did you find a property yet?

Hello all - I'd love to hear about some of the challenges investors are facing when trying to fund rehab projects, either to flip or hold. Are credit guidelines too strict? LTV too low? What's an ideal financial product that you guys are looking for but haven't been able to find?

Lee - This really depends on your business plan. The guys I know in this business that don't use hard money are in a couple different scenarios.

1. They do one deal at a time and utilize their own capital to move from one to the next. Usually have day jobs and do REI as more of a side thing.

2. They work with a private investor. These are folks that fund 100% of your deal in some cases and split the profit with you at the end. (As stated before in this thread, you really need to build a solid relationship with these folks as their terms on timelines can be pretty strict).

3. They have assets they are willing to leverage. Most of these folks are working full time as an REI and may not have a ton of liquid assets but do own some free and clear properties that are rented out and positive cash flowing. Banks will usually leverage these assets and set them up with a line of credit at a fairly low interest rate for 60-70% of the value of those assets. This is generally the only case where you are going to find a 0 point/4% APR deal.

Outside of these cases, a lot of investors use hard money to give them the ability to do more properties at a time if they have the construction resources to handle. If the scope of the deal is profitable, some use them from deal to deal. Again, it all depends on your business plan and the situation.

Thanks,

Adam Farag

Renovo Financial

219-808-6877

renovofinancial