All Forum Posts by: Dan Beaulieu

@Yinglu Wang It may be a little different than you're used to there in NYC... I've had bullet holes in 2 of my houses in Chattanooga. One went right through the siding and into the mechanical closet, another one right through the master bedroom window! Pretty sketchy. Is there some crime in some of these neighborhoods? Yes. But overall my experience with tenants has been great in Chattanooga, properties have appreciated a ton, and cash flow like crazy. 

If you want to stick to nice areas with lower crime, try ooltewah / collegedale area, or anywhere on the north shore. Best of luck! 

@Jaki Ollango The difference between one lender's rate and another's may be the difference of just a few hundred dollars per month...If you were to refinance into another hard money loan, you would likely have thousands of dollars in closing costs all over again, and tons of hassle, and just wouldn't be worth it. Finish out the project as quickly as possible and put it on the market, or rent it out and refinance into conventional. Next time, you definitely want to know what the fees / payments will look like with the HML before closing the deal, and factor it into the deal. 99% of the time it will still be a lot cheaper than bringing on a partner and giving them equity. I do both in my personal investments...HM, private money, equity partners. As long as you have a solid plan and understanding of the numbers going in, you'll have clear expectations and the foundation for a successful project.

Best of luck! 

@Zachary Boetcher I do a ton of biz there...can get you connected to whoever you need to and plugged in with some wholesalers. Time to CRUSH IT. 

Definitely reach out to Kurtis, We fund a lot of his deals for his buyers and he is one of the few wholesalers that puts out decent stuff

@Charles Hirst I'm the guy for HML in chattanooga...feel free to reach out any time. We also lend in Huntsville...To be honest, we've been seeing some meatier deals come in from Huntsville. Chattanooga is straight nuts right now! That's not to say there are no deals left...if we are funding 10 deals a month there, many without any down payments, then there are certainly lots of deals out there! I also own 15 properties in Chattanooga personally, and still buying there from local wholesalers. No slow down in sight while interest rates are insanely low for conventional financing...

@Douglas Sanson

Find out what return makes it worth their risk. 12% range is typical starting out.

You need 3 documents. Actually, your lender needs them for their own protection.

1. Promissory note

2. Deed of trust (or Mortgage deed in some states). This document gets recorded and is the instrument that collateralizes the property. Basically it says if you don’t perform, the lender can foreclose.

3. Personal guarantee, which is recommended if you’re closing the deal in your entity. Unless you have a sophisticated private lender, you probably won’t bother with this

Have your title company / attorney draft your promissory note and deed of trust. You sign the documents at closing, the DOT gets recorded, and copies sent to your private lender.

The only other thing the lender will need to do is notarize a release of lien when it’s paid off.

@Matt Wells

There’s no issue with this

@David Karnes A heloc is a good route to go on your first flip. If you are supplementing with bank financing, the best deals are often the ones that need to close very quickly, and much faster than a bank can work with...this is where hard money or private money is a great tool. Even the most experienced investors with 100s of deals under their belt occasionally use hard money as a tool when needed. Also, the benefit of that type of financing would be that you have somebody very experienced in rehabbing double checking your numbers and watching over your shoulder, and hopefully available to help you through the process when needed. 

You might need to look for an agent that understands Brrrr...I suggest finding somebody through bigger pockets. There is certainly a lender in your market that does 100% financing, either private or hard money. Wish I could lend there!

@Luke Carl Makes sense. Where to next? Huntsville?