All Forum Posts by: CHRIS MITCHELL

@Jimmy Hong 

As a matter of fact I was just turned on to the local REIA group by a local lender, definitely going to check them out.

@Jay Hinrichs 

Thanks, I may have to change my approach, do know a few subs personally that I went to high school with, maybe I'll connect with them and see if we can do something.

@Corey Beckwith Well, I'd hope to be done with rehab by the middle of November and have it sold by Thanksgiving weekend. I"m all about painting the lawn, whatever it takes. I wish there was a basement at this property, it would be another great selling point. Downloading the app right now, thanks again.

Thanks guys for the advice, it is appreciated. @Edward, if things are looking bleak when I go to sell or if it looks like it's going to sit for more then 2 months I'd probably refi to dump the hard money guys and rent it out or who knows, I may have to live in it, lol.

@Corey Beckwith 

Thanks so much for the encouragement and knowledge.  I thought I was the only guy who checked the "oops" section at the paint store. lol. Also, I hear you on the closeouts, I'm kinda on the frugal side anyways, I'll shop 4 stores for a pair of socks to make sure I'm getting the best deal. As far as using different subs that will be my plan in the future but for this first job with me still working fulltime I want the GC to be my point man and handle as much as possible. I know I'm probably giving away some money that I dont have to but for this first deal it's what's right for me. I'll keep you updated.

@Austin: Wasn't able to find an investor, the contractors gave me time frames from 5 weeks to 6-8 weeks however I want to be conservative and figured 12 weeks to rehab and 2 months to sell

@Edward With all due respect, you don''t know my complete situation and you are making alot of assumptions. First, I haven't signed any loan papers yet, next, I had a contractor lined up and he fell through, Im not going to pay retail, this is my first rehab but not my first rodeo, Im fairly knowledged in home construction and costs, both labor and materials. All of the bids I've gotten have been within $2000 of each other and time frames within a week of each other. If $50000.00 is too much to completely gut a 3 bed 2 bath down the the studs and rebuild with high end finishes then I guess I am a sucker.I had all intentions of purchasing the finishing materials myself and allowing the contractor to pay for the building materials. You are assuming I was going to use seperate HVAC, Plumbers, electriciansand Roofers, that is not the case. The GC I was going to use has a large workforce and they do all work inhouse, no subs (other then landscaping, tree removal). I know I could use credit cards if I wanted to for those things but I would rather not. Also, if you think 3-5% origination fee and 13-15% is for buying a home you live in you are the one that needs a lesson. However, if you are looking for 100% purchase and rehab funding I'd be happy to refer you, within the rules of this forum of course.

@Jimmy: there are a few out there, very few however

@Wayne: I have a Lowes card with a $12000.00 line and I know they have no interest for 12 month financing specials

I've tried pretty hard to get an investor even before I went down the hard money route because it is so expensive but I had no luck and I didn't want to lose this property. It's not easy to get property in Lower Bucks County that can score you this kind of return.  I'm sitting here racking my brain out.

I'll try to make this short, I'm about to venture into my first flip, property is $58000, rehab costs $50,000, arv $180,000. My liquid funds are extremely limited so finally I found a hard money lender that will fund 100% percent of the purchase and rehab, I have to come up with closing costs ($4500). Rehab time 6-8 weeks, 3 bed 2 bath ranch 1200 sq ft in Bristol PA needs full rehab. I also have to pay origination fee of 3-5% which will be rolled into loan andmy interest will be 13-15%, (I'll know exact figures Monday). Loan term 12 months, interest only payments. My problem is finding a contrctor that will work with the draw schedule of  the lender. This lender apparently won't make any of the rehab money available up front to get the project going and every contractor I talked to wants something up front. How do other rehabbers who use this type of lending product for these situations deal with this? Does anyone have a general contractor in the Bucks County/Philly area that work within these parameters?