All Forum Posts by: Chinmay J.

I do have LLC. HMLs typically only lend to LLCs. But if I were to go the traditional route with a traditional bank, I would be doing it under my own name. Since most banks don't lend to LLCs. Also if you need to refinance from HML into a traditional mortgage, you would (in most cases) need to transfer the deed to your personal name.

Good question.. It helps me save lot of money, as I can apply my commission directly towards the closing costs. Also, when I list, I don't have to pay the listing agent as I am the listing agent myself. Also, thankfully, I am blessed to be associated with the company that lets me keep 100% of my commission with very small amount going towards their processing fee. Something like $395. 

Maybe we got different definitions of trolling. But I talk like common man. I don't talk like I am from Royal family. I am also a straight shooter. Maybe it doesn't come across the right way in 2 dimensional medium. All good.. 

 I did.. Scroll up and read. My advice is sound. Perhaps not what you want to hear, but still sound.

Chinmay, have you used a HML? What was the deal structure?

Using it for my current flip. 20% down up to 65% ARV. 4 pts. 11% Interest. 12 month loan.

These terms are pretty standard BTW. Anything that deviates too much from this you should be a little wary.

See.. Right question can get right answer.. :-)

 I did.. Scroll up and read. My advice is sound. Perhaps not what you want to hear, but still sound.

Oh ya!!! Good luck with banks loaning to LLC.

That's a great way to go about. Hard money is great if you find a right partner. Yes, its expensive, and if you have other ways to do the deal, by all means you should do it. I am doing my first deal with HML. But he has a great reputation in the local market, and comes recommended from other successful flippers.

 You can always ignore me.. The input I give can be used by many, not just you. 

LOL.. The HML will require you to personally guarantee the transaction, which will override any LLC protection you get. Do you really think HML lenders are that naive to lend you on the property when you have NO prior experience, in your case NO capital, without you personally guaranteeing it.

You are better of finding a rich uncle.

@Luke Mitchell and @Danielle C. - So let me get this right.. You want to use HML who charges about 10-12% plus 3 to 5 points, and in order to be funded by HML you want to use another source of money which even charges higher interest rate (anywhere up to 25%). This is not just a terrible idea in theory, but practically speaking, I won't be surprised if most HML would decline to work with you, It shows that you are not financially sound for the deal to begin with..

If you don't have the money yourself, have you considered a JV with someone who might be able to bring cash to the table? Of course, the JV might want you to have some skin in the game (unless you have some other skill you are bringing to the table), so you might have to contribute at least something...