All Forum Posts by: Asif Shahzad

Looking for a lender to do a cash out refinance on our investment property with a loan based off the rental income.  My husband recently started his own renovation business so we can't do traditional funding.  This property has a lot of equity (about $1 M), with really good rental income.

I got information from a lender, but the origination fee is 2.99% of the loan. Is that typical? What should I be looking for when I go to non-traditional lenders/HML? Willing to do what needs to be done, but don't want to look back and say wow we really overpaid on fees, etc.

Thank you in advance.

@Stuart Udis - Yes, I am looking for someone to guarantee the loan and provide half of the equity. The numbers below are based on a flip my neighbor is currently working on. This property is near the Nassau Ave subway station and around the corner from where I currently reside in Greenpoint:

• - Purchased the property for $1.84 million in July of 2024.
• - Carrying costs: $660,000 (includes closing costs, renovations, interest rates, insurance, staging for sale, etc.)
• - Expected sale price: $3.5 million. Note that I believe this is an accurate comp for the area. An unfinished property similar in square footage was just listed for $3.2 million on my street. My neighbor is also a real estate broker.
• -Total anticipated profit before taxes: $1 million.

I don’t know if they rolled the construction costs into the loan. Assuming they did and provided a 20% down payment, they were both in at $250,000 each and expect to make $500,000. 

In terms of experience, this was their third flip. They are now looking to buy a property a street over and are also looking to perform ground ups.

Additional details:
My neighbor is managing the work and purchases many of the long-lead items. While he’s not licensed, a general contractor who has worked with him in the past is comfortable with my neighbor executing the work under his license (for a fee, of course). 

They expect to complete construction by the end of March.

He and his partner (who guaranteed the loan) plan to hold the house for a full year to avoid paying short-term capital gains taxes.

Let me know if you need me to clarify anything further.

I don't often see people have success finding a mentor on these forums. It's a big ask to ask someone to share the knowledge they've accumulated over the year and guide you in return for nothing.

Instead, I recommend a targeted, tailored approach with you looking to offer something in return for the guidance you're looking for...

To me this means directly reaching out to the people you'd like to mentor you, in person if possible. This could be a local realtor, investor, contractor, appraiser, property manager, whatever.

It also means having what you're offering ready and tailored to the individual. If you say you'll do whatever, even if you give a list, you're putting the burden on them to determine what to do with you and creating another barrier to entry for yourself.

What you do specifically depends on the mentor. For an investor you could "drive for dollars" then use the deal calculator on this site to create reports of deals that makes sense in your area. If you took that to a meetup and gave it to every investor you met, I bet one would be willing to talk to you.

I don't often see people have success finding a mentor on these forums. It's a big ask to ask someone to share the knowledge they've accumulated over the year and guide you in return for nothing.

Instead, I recommend a targeted, tailored approach with you looking to offer something in return for the guidance you're looking for...

To me this means directly reaching out to the people you'd like to mentor you, in person if possible. This could be a local realtor, investor, contractor, appraiser, property manager, whatever.

It also means having what you're offering ready and tailored to the individual. If you say you'll do whatever, even if you give a list, you're putting the burden on them to determine what to do with you and creating another barrier to entry for yourself.

What you do specifically depends on the mentor. For an investor you could "drive for dollars" then use the deal calculator on this site to create reports of deals that makes sense in your area. If you took that to a meetup and gave it to every investor you met, I bet one would be willing to talk to you.

Hi Asif,

DM me your preferred method of contact (phone, email/Zoom, or Meet) and a time frame to schedule a meeting/call.

I look forward to speaking with you.

Regards,

Dan