All Forum Posts by: Connor Hibbs
Connor Hibbs has started 6 posts and replied 204 times.
Post: Fix and flip/construction loans

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Hi Mary,
It is true the lender will not usually give you the rehab funds in advance, but this does not mean that you must complete all of the rehab out of pocket. What this means is that the rehab funds will be held in escrow and you will need to request draws once work has been completed.
For example, if you've got a 65k rehab budget and can complete 10k of the rehab with you own funds, then you'd start with the 10k of work. Once completed you'll reach out to the lenders servicing team to request a draw. From there the lender will send someone out to confirm that 10k of work has been done (using your provided rehab budget for reference) and then send you funds accordingly. Most lenders have a limit to how many draws you can take from your rehab budget and often it will cost a small fee (you can include that in your budget) so you'll want to confirm if/ what their limit is should you expect to be taking a lot of draws or complete the rehab in smaller increments.
Post: Residential Tenant brokers

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Hi Robert,
I'd recommend reaching out to a local agent in the area or if you know of any property managers in the area. You can also visit some local investor groups to see what their experiences are like for finding tenants as their advice will be more tailored to your market.
Post: How much is too much?

- Lender
- Farmington, CT
- Posts 210
- Votes 103
What are the other properties in the area worth and was are common features in them? If you'd be the only property without central AC or with older electrical work then I'd recommend fixing that, but if it's more common to be without these then you should be find. Look at the comparable for what you want to sell/ rent at and go off of that.
Post: Family member wants guidance on a residential property in Downtown Detroit

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Hi Jivonna,
Does your family member currently live in the property or is it an investment property? I'd recommend holding and rehabbing it, but I think more information would be important to give the best advice here on this one. Depending on the rest of the scenario I could see it being worth selling.
Post: Construction Lender Recommendations

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Hi Courtland,
My company does offer GUC loans, but we do require some previous experience. Would these be your first builds or have you done a few in the past 3-years?
Post: I’m new to investing starting of with fix and flip

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Hi Terrance and welcome to Bigger Pockets!
Rehab projects are great and they give you the option to sell and move on after completing or to hold the property as long-term rental to generate some extra income. The more experience you get, the smoother your process, the more confident you'll get in your contacts, and the better the terms you'll get from lenders.
A few things to keep in mind for you as you go about your projects.
1. Don't get emotionally attached to a project. Do your best to only move on the properties where the numbers work well for you, even if that means passing on one that you may like a lot but isn't going to be profitable for you.
2. You're off to a great start by posting here but seek advice. Bigger Pockets has tons of tools and getting advice from investors local to your area could help you to mitigate or avoid a lot of potential issues down the line.
3. Always include a contingency in your rehab budget. If you need the extra funds then they're already factored into your numbers and if you don't need them then you're being even more profitable. 10% in contingency is typically a pretty safe number for this.
4. Leverage your liquidity. Keep yourself liquid and take advantage of lenders. If you can do 1 project 100% out of pocket or potentially 3 projects with liens from a lender then you're giving yourself a better chance with the three. You'll also be leaving liquidity available should a great deal come your way instead of being locked into just one project at a time.
Post: Refinanced my first BRRRR but bank will not let me put it into an LLC

- Lender
- Farmington, CT
- Posts 210
- Votes 103
You should go with a DSCR loan, and you can quit claim it into your LLC at the closing table with the title company. it's not uncommon for DSCR Lenders to do this for people looking to move a property from their personal to their LLC.
Post: Looking for a Dscr Loan

- Lender
- Farmington, CT
- Posts 210
- Votes 103
I'm not sure if you've landed on a lender for this one yet, but something to keep in mind too is that you can typically lower your rate with points on DSCR loans. If you need a lender I'd recommend @Conor Deasy to get you some rough pricing.
Post: Looking For Private Lenders

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Quote from @Dennis Mignone:
1. Yes, figuring around 10%.
2. Soon in the process, but am also looking for a private lender, in order to be able to do a/some deals sooner.
3. Already have.
4. Agreed, not an avenue for me.
I'd be happy to get you some rough quotes on the purchase and rehab side as well as for the refinance aspect if you'd like as I work closely with a few private lenders who would be a good fit for this scenario. Please let me know or dm me and I can let you know the info I'd need to get you some rough terms.
Post: Looking for recommendations on funding for fix and flip

- Lender
- Farmington, CT
- Posts 210
- Votes 103
Hi @Ryan Theys,
There are plenty of lenders out there who will be able to help you here. One thing to keep in mind is that the majority of lenders will be basing the loan terms they offer in regard to your experience in the last 3-years. The way that they confirm experience is that you'd need to have your name or the name of an LLC that you belong to on title for when the property was purchased and rehabbed. Unfortunately, having done the rehab work yourself or being a GC doesn't necessarily qualify as experience with lenders, so you'll want to keep that in mind as you get started.
Having said that, if this is your first one with being on title, then you should expect about 75% of the purchase + 100% of the rehab as long as there is decent value added from the rehab work.
If you'd like some rough pricing as an example, I'd be happy to help.