All Forum Posts by: Coral Hernandez

@Anthony DeMichael

Hey I know of some good wholesalers that could help you.

We enjoy solving problem and providing solutions

Let’s connect.

They do say it takes a Village to Close a deal

@Dwight Gholson 

     I am sorry to hear that you are having a hard time understanding what the process is to obtain a Hard Money Loan. In this climate things have changed slightly but our approaching back to normal Pre-Covid Terms.

     Your first step would be to (1) Use lender Formula to determine if the Property is Good Deal and Fundable, if so (2) Get On-Boarded and Pre-Approved with a Hard Money Fund. Once pre-approved on Credit, you would (3) Submit Contract and S.O.W. (scope of work -- a detailed outline of the Planned Rehab of the property) and then Hard Money Lender would order step (4) & (5) Appraisal, typically $400 paid buy you, and Title company. 

Now, this is when the fun part starts. After the Appraiser submits their report, the ARV Amount is determined. This is where the deal can fall apart or be re-worked. This is because the Deal is determined by the After Repair Value, typically the Loan can be up to 65%-70% of this amount (ARV is $200,000, the Loan cant be more than $130,000=[$200,000 x 65%] including Rehab, minus the down payment. Say the loan is for $126,500.00 and the ARV comes back at $180,000. Now you total loan amount can only be $120,250.00 =[$185,000 x 65%]. So in this scenario you can either bring the additional $6,250 to closing or minus it from the rehab.

     Once, the ARVLTV and Loan all add up correctly and the title comes back complete.That is when a closing date is set and all cost will be due.

    Lets connect if you want to talk further and learn more about the process.

@Edi Mari

Always do your research and ask for referrals. Google is your friend, so is bigger pockets.

Let’s connect to discuss further

@Duwayne Mc

Hey there is a couple options out there still. If you do research you can find some good ones.

Let's connect

@Martin Bastida

Hey Martin. US HERE at We Lend our still lending. We are doing fix and flip loans currently Nationwide. We are doing drive me appraisals as well, due to the times.

We are accepting applications for Funding on SFH and Multifamily 1-4

Click on my contact button and we can jump on a quick call to discuss terms and guidelines

The purchase price

@Eric Skinner

Make sure to put the @ sign so it tags the person properly.

Your looking around 25%-30%

@Eric Skinner

Hey HML's will lend to you; albeit, at a higher down payment amount aka leverage aka skin in the game. Also, they will limit your rehab cost budger/amount ( If they are practicing good business morals, a HML won't/shouldn't let a newbie get in over their head with regards to rehab, unless they want to foreclosure on you, which is sad but true).

Your rehab budget as a Newbie should not be more than $60k-$65k and should not be a full gut either. There are many reasons behind this, but are all to protect the Borrower from coming out upside down on the deal.

When determining the holding cost on an HML, most our 12month terms, and you should calculate based off of that. Your profit margin should be 35% or higher for the deal to make sense.

All in all, you can find a hard money lender if you are new to the game and dont have verifiable experience (deals where you are on the paperwork and not as a silent partner).

Do your research and dont get pulled in by super low rates and Do Not Pay an "Application Fee" just for a lender to look at the file.

Also find out if you are working with a hard money lender or a broker?

Best of luck

@Greg Gaudet

Thanks for getting the Word and giving people the heads up. It's in times like these when we need to pull together and help one another.

In real estate it's to know you have people that have your back. It take ls a village to raise a kid and close a deal.

Hey BP,

How do you guys find Profitable Deals? Do you use one method that is perfected, or do you use a combination of a couple different strategies?

And with regards to Real Estate Agents, do you use them and/or need them? Does your strategy for finding these deals change depending on your financing (Traditional Lender, Hard Money, etc)?

Last of all, what do you feel is one of the most important traits you need to succeed at finding deals?