All Forum Posts by: David Prince

@Erik Hatch it’s a class c, 98% occupancy, below market rents and close to military base. Waiting to hear back from the realtor on the pro forma.

I have a lead on a 16 unit multifamily. This will be my first multifamily deal so I'm obviously a little anxious about the financing. I've purchased SFH before so I know how that works but this is a new area.

I’m still conducting due diligence but the deal looks good so far. It’s in a stable area, good rent roll, owner has taken care of issues quickly and all units leased.

I'm not positioned for a conventional mortgage. Any thoughts on how to structure a deal without traditional financing and little cash? Anyone use JV for this type of scenario?

I have found a good opportunity for a 16 unit investment well priced. I’m conducting due diligence on the deal but with the current climate wonderful if there is additional risk I should consider? Are other folks still buying during this time? How are you approaching deals differently?

@Nate Marshall thanks for this insight. I hadn’t thought of the draw schedule and assumed that would be dictated by the lender. Something I’ll need to pull together.

@Benjamin Hurwitz thank you for sharing. I had most of these in order so it’s good to see I’m on the right track. Great point on just asking a few to get a real sense of their focus. Thanks!!

I’m looking for samples of any deal packets you submit to hard money lenders. What stats do you include (aside from the obvious rehab budget, holding cost, acq cost and sale/rental returns).

I assume a quick overview of past project would be helpful. Anything else?

I have a deal I want to submit to a multiple hard money lenders to get the best rates. Would love to hear what has worked for you.

@Stephanie P. thank you for your insights. Im leaning toward a contract sale and hard money rehab since it seems to be a little more flexible. We will see how the negotiations go though. 

Any hard money lenders you would recommend? 

@Joe Villeneuve- I mention feeling comfortable with the scope not to imply overconfidence but rather just to express that the breadth of this rehab is something I am familair with and have contractors ready. However, I appreciate your advice and was thinking along this route as well. Have you worked a deal on contract with an estate before? Is it any different than contract with an individual?

@Matthew Irish-Jones Thank you for the recommendation. Any HM Lenders you would recommend or just dig through the BP lists?

I’m hoping for some direction on alternative ways to finance a deal.

I want to stay away from traditional financing for this one for a few reasons: house is a gut and would never get approved, I'm planning a larger multi-family purchase later this year and need to preserve credit, this will be a flip so short turnaround or possible BRRR.

This is a single family. It has been vacant and previously owned by a hoarder. Home has been cleared and I have been through with a GC so I'm comfortable with the scope of work (managed similar projects before). This property will never get financed with traditional lenders and I can't finance cash myself. This property is listed with a realtor but my license isn't valid in the state of Indiana (I'm licensed in IL). I think, but haven't confirmed, this is held in an estate after the owner recently passed. Sale price is roughly $100k. Reno would be at least $75k. ARV is roughly $250k. Average rehabbed properties sell in 30-45 days without staging or professional photos. Already been in the market for 30 days and moving into the slow season for this area. If I snag it now i would have it back on the market in peak season next summer.

I’m thinking about two options: (1)seller contract with 12month balloon or (2) private/hard money plus contract. Any other options?

First, on contract, what is the sellers incentive here especially if it sits in an estate. How can I position this as a value add for them? Also, is it possible to get the buyer side commission from the broker if I’m not licensed here? How would you structure this proposal?

Second, private/hard money, what are some ways you might position this? Ideally, I’d get 100% financing (75% private/hard with seller carrying 25% note) or something along those lines. I don’t have a private money lender currently in my network (working on it). I have cash if needed but trying to keep that in reserves so I’m liquid if the reno requires additional capital. How would you attack this?

Thoughts? Ideas? Referrals?