All Forum Posts by: Dan Gamache

@Claude Calixte what will the approx After Repair Value of the property be?

@Mitchell Wyatt I'll send you PM.

@Mitchell Wyatt You can start out as a fix n flip loan which usually requires 10% downpayment, and then when rehab complete you can refinance into long term rental loan up to 75-80% of new appraised value. Most banks/lenders will require an ownership seasoning period from 90 day to 6 months or longer. You will be paying high rate during the fix n flip loan and you have 2 sets of closing costs for the 2 loans.

@Jonathan Farber What is the purchase price? Is it in need of rehab/value add or is it stabilized?

@Joshua Lidberg If you take a loan in an LLC with a private/commercial lender it should not show up on your personal credit report (you most likely will have to personal guarantee). I can only speak for who I work with, but I think it's across the board it won't show up on credit. If you take out in personal name & transfer to LLC it will appear on personal credit & other creditors may want to see proof of payoff.

@Darrell Wallace not trying to be a smart ***, but if the builder already owns the land & I assume will be the one building the property, why would they want to partner up? There are construction loans in the private lending world that requires 10% down of total costs (land purchase + construction cost) and if land is already owed can count the purchase price of land towards the downpayment. 13 month, interest only loan.

@Lillie MAnon I may be wrong since I don't offer FHA, but I thought they were only for owner occupied properties.

@Nicholas Sheridan, Jr. look for properties that need rehab and use the BRRR method. You can get an initial fix n flip loan with 10% down of total costs (purchase + rehab) as long as you buy it right, you can refi into long term loan once rehab is complete to 75-80% of new appraised value. If you are looking to buy rent ready you need minimum 20% down (assuming this is investment property).

@Ashley Wynn one you are over 4 units you are in a whole different lending criteria. Unless you can qualify for long term bank financing on the BRRRR refi, I would recommend sticking to 1-4 units.

@Jorge Rivera Keep in mind that many commercial/private lenders that lend on these type of deals would not allow you to have a family member as a tenant.