All Forum Posts by: Darryl R.

Hello,

So I have had a flip going on that just finished rehab and is under contract. Our original construction contract had an estimated finish date with the majority of work being completed by 12/31/20. It took 5 additional months with a lot of added holding costs. We had an agreed contract amount and we did make some changes during the rehab that we gave verbal go aheads to as well as some via email. These additional costs should have been about $50k in my estimate. We are close to $175k over the original budget. Every time he has asked for money I paid to keep it going especially since it was so far behind. I believe I have way over paid and I know I shouldn’t have but I did. I needed to keep it going with time constraints. Do I have any recourse here or options to recoup my money that was over paid? Or did I make the fatal mistake of continuing to pay even though I knew it was way to high? Any help or insight is appreciated. I’ve got thick skin so you can tell me I’m an idiot also haha. Thank you for your time.

Hello, I am looking for a hard money lender in CA for a primary residence. I have a flip that is over 80% done and my hard money loan on that puts my DTI over conventional requirements. Looking for someone with some more leeway to help me get my family in to a house then will refi after the flip sells. If you can help let me know please and we can discuss more. Thank you. -Darryl

Hello, I have a question about hard money lenders. Do they have different DTI requirements than a conventional lender? This is not a solicitation as a prior post was taken down. I am just trying to understand how they work. So if your a hard money lender and you can shed some light on this please let me know. Thank you. - Darryl

Hi everyone. I have purchased multiple SFR using traditional conventional lending. I am looking to start acquiring multi family properties. I am looking to buy a personal residence next year and was talking to my mortgage guy about my options. I have a W2 job, over 800 credit score and a decent amount of capital to invest. He was mentioning that if I take on multiple mortgages it will lower essentially my buying power because it will make my debt ratio profile tight and effect my buying power for my family home.

What I am asking is how do commercial loans work? I have read many posts on here but still unsure. Do I need to or is it best to create an LLC to put the commercial loan under? How do I pay myself from the LLC? Does having a commercial loan/mortgage effect my personal debt ratio? I am newer to this game and looking for education and advice. I see people are scaling and I am glad for your success and looking to do the same. Additionally what is desired or required experience to get approved for larger commercial loans, say larger than 5 doors in a property? Is it best to use hard money to get in and improve and then find the commercial loan? Obviously being able to do a cash out refi is best to keep moving. Is that possible with commercial loans? Thank you very much for your time and feedback.

@Kelleigh League

I am not looking in California but more the Midwest and south. Where do you guys do business? I guess just finding wholesalers is what I’m trying to explore. That’s why I’m here. Thanks for your input.

@Moises R Cosme

I am in California. Just starting out. I appreciate your reply and will pursue your advice. I’m evaluating multiple markets and trying to make the best decision. I am ready to get my feet wet but obviously the numbers have to work. A lot of the markets I’m looking at seem to be ideal for section 8. From my research it seems to be a good option if you have all the requirements in place and able to address issues. Do you have any thoughts on that? Thank you.

I work full time like most people and have trouble finding deals or traveling to other states to see properties. I believe that it is worth paying a premium for a wholesaler to find me a deal. Am I wrong? How do you get on wholesalers lists? Also, which markets are you having success in right now? Thank you for the input.