All Forum Posts by: David Prince

@mike slusher- I would love to hear what other have to say about this as well. Seasoning is a big hurdle if your trying to move quickly. 

@Maria C Quimpo Thanks for sharing and adding the $$- its a big help as I am trying to wrap my head around some high level understanding of expenses. 

@Mark Shelstad Looking forward to hearing how it goes. Sounds like a big but exciting project!

As I prepare for my first Chicago flip, Im curious if someone can share their experience with building permits. I know it varies depending on many different factors but, as a general rule, what is the time and expense (fees) associated with getting necessary permits for standard rehab project?

@Mike H. Thank you for the thorough reply. I have flipped a house but it was a conventional mortgage and primary residence while I renovated (that was a nightmare). Turned out well but I didnt document well so not the best insight for lenders. 

Two questions- 

(1) Any tips on finding those lenders you mention above- good ol' meetups, biggerpockets listing or other places? 

(2) Im definitely interested in partnering and splitting the profit. I understand that starting off there is a price to pay for experience and entry so Im open to these types of arrangements. Any insight for how to find those looking for a partner?

@Michael Facchini Thank you for the insights. I'm not familiar with portfolio financing but will definitely dig into that more in the coming days. When calculating the debt-to-income, does rental income from the property count if a renter is already in place- I assume so....?

Preparing for a new fix and flip project in Chicago and wonder if anyone has found success in financing a project with 100% OPM (purchase and reno)? If so, how did you connect with your lenders? Did your lender require a specific Loan to ARV ratio? Average interest %? What creative financing terms worked well for you?

Some I've considered:

1. Interest payments plus % of profit after sale

2. Points plus interest payments

I'm looking to this route to get started and build some reserves so I can pursue less costly funding options. Unfortunately, tapping family isn't an option and no HELOC or self directed IRA to tap either. In Chicago, not many sellers willing to finance either so looking to other options.

I've been working this direction for a while now but recently got an unexpected nudge to take action.  So, Im taking action!

@John Leavelle Thank you for sharing. This is great information and validates what I had in mind. I appreciate the quick response!

Good Morning, 

Im new to the game in the Chicago market and looking for some insight around BRRRR strategy. I understand the creative funding for the purchase and reno but curious about the refinance aspect. It seems as though most of the posts elude to this being conventional financing terms through banks or other. Is that typically the case?

And what are the typical terms- 80%LTV and personal credit history or is this tied to a business entity that doesnt rely on personal credit? Im sure this varies significantly but looking for trends or general guidelines to wrap my ahead around the end-to-end strategy.

Thanks in advance for your insights. 

Hello! Already getting a ton of great info from the site. Im getting started in Chicago and building by knowledge foundation. Ive renovated/rented/sold my first property and feel like I hit EVERY obstacle they dont show on HGTV. Im new to Chicago though (first property was in Indiana) and want to learn more about the local market. 

I hear there are meetups in and around Chicago but little info about where to find the meetings, times and locations. Any advice for how to find these groups to join in on the knowledge sharing?