All Forum Posts by: Adam Soyak

@Mike McCarthy-Do you typically go with a higher deductible?  $2,500 or more?

Hey Ryan,

Sent you a PM.  Thanks!

@Markos Gerges, did you find that Huntington had a higher rate than the typical 1% over prime?

@Guifre Mora, thanks for the quick response. For me to cash out at 75% ARV, do I have to wait the 6 months, is that what you mean by "stabilized"? So far my experience has been waiting the 6 months because lenders have told me that the ARV is irrelevant until that point.

I can't seem to find the podcast I listened to, but it discussed something along the lines of setting additional money in escrow at time of purchase to make the home purchase sales price larger than the contract amount. 

For example- 

• Home Sale: $75,000
• Cost of repairs: $25,000
• ARV $150,000

Say I want to refinance after 2-months (delayed mortgage or other).  I am being told that the maximum I can refinance is the total amount of the home sale.  Which is $75,000.  I would have left $25,000 (cost of repairs) in the home.

Can I add $25,000 to the purchase price (in escrow?) pushing the sales price $100,000, which in-turn allows me to refinance at the new purchase price of $100,000.  Thus allowing me to pull all my funds out of the deal when I refi.

Is this possible?  If so, what is this process called and any additional advice is greatly appreciated.

In search of a local bank that works with investors to provide HELOC loans or line of credit for rental property investments in Illinois, Chicagoland suburbs. I have been searching for a few months now and most are telling me I must live in the home. I've read that I should be asking the same questions in the commercial banking side in lieu of residential, but no such luck yet. Any recommendations are appreciated!

I am working on forming a possible partnership with someone who owns multiple lots (lots are SFH up to 16-unit apartments). I have the construction contacts and access to funds for the ground up construction (1 building at a time). The owner of the lots is very interested in learning the construction side of the business and I am willing to teach him the ropes.

The lots on average are $35k. The construction cost is $165k for a SFH, and the ARV is 240k. Real estate commission will be reduced due to my wife being a realtor.

I am trying to figure out a fair deal for the owner of the lots whether it be a flat % return, a partnership split, or another type of agreement. Looking for suggestions on how to work up this agreement whether it be 1 lot at a time or multiple lots for future buildouts.

Thank you for your suggestions in advance!

I am working on forming a possible partnership with someone who owns multiple lots (lots are SFH up to 16-unit apartments). I have the construction contacts and access to funds for the ground up construction (1 building at a time). The owner of the lots is very interested in learning the construction side of the business and I am willing to teach him the ropes.

The lots on average are $35k. The construction cost is $165k for a SFH, and the ARV is 240k. Real estate commission will be reduced due to my wife being a realtor.

I am trying to figure out a fair deal for the owner of the lots whether it be a flat % return, a partnership split, or another type of agreement. Looking for suggestions on how to work up this agreement whether it be 1 lot at a time or multiple lots for future buildouts.

Thank you for your suggestions ahead of time!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $50,000

Cash invested: $100,000

Sale price: $142,000

Estate Sale, cosmetic upgrades with termite damage

How did you find this deal and how did you negotiate it?

Estate Sale-Family member
no negotiation-paid what the family needed

How did you finance this deal?

Cash purchase including rehab

How did you add value to the deal?

Removed termite damage, cosmetic repairs, and replaced electrical

What was the outcome?

Sold house to neighbor renting next store. No realestate involved.

Lessons learned? Challenges?

Taxes were in issue because it was a senior that living in the home prior. I inherited the taxes from the prior year as a non-senior, AKA no discount. That additional cost came out of my profits at time of sale.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $115,000
Sale price: $249,900

Single Family House-1400sqft-3/1.5
Actual sqft was 1600sqft and was able to convert bonus space to additional bed room and convert 1/2 bath to full.
4 bedroom 2 bathroom, huge 4 car garage with hook up for in floor heating, and sits on large 1/2 acre lot.

What made you interested in investing in this type of deal?

Wanted my first deal to be small enough to manage and not stress financially

How did you find this deal and how did you negotiate it?

MLS-jumped on with offer the same day as the property got relisted.

How did you finance this deal?

Cash purchase, with funds borrowed from family.
Construction loan for the rehab 65/35

How did you add value to the deal?

Sqft was greater than listing showed
Upgraded half bath in master to a full bath
Open concept kitchen

What was the outcome?

Had multiple contracts on property and eventually sold with $25,000 profit.

Lessons learned? Challenges?

Vetting the contractors including recommendations is a must.
Make sure to understand how many jobs your contractor is fully taking on at the same time.
Waiver process was essential with the bank on keeping the contractor honest with scope of work and schedule.
Get everything in writing for change orders.