All Forum Posts by: Dennis Parslow

I've used this 6 times now and it works well. Leave the CAP rate blank if doing residential, as the note states when you hover over it.

Consistent Daily Action...   Over the past three days I have analyzed 6 deals, looked at 3 properties, and spoke to two hard money lenders.    I met with Adrian of AMZA Capital yesterday to run through my situation and a 'case study' to ensure I am calculating my potential lending costs when using the bigger pockets calculators.   Here is the case study for a flip that takes 4 months to complete.    My first reaction is that the rate may be 10.99%, but it's really double that, because the origination fee is essentially the same amount.  It would cost $11,171 dollars for the hard money loan, in addition to my 'skin' of $25k.

Thanks Neil Henderson. I did try the BRRRR calculator, which does account for the rehab loan and then the conventional loan. However, it changes the ARV once you enter a CAP rate, which seems odd.

https://www.biggerpockets.com/calculators/shared/1271909/f8f1205c-e3fc-4d8a-818f-22c23e5a3dd6

Thank you.  I plan to use my 401k loan for my down payment very soon.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I'm not clear on how to use the calculator for a BRRRR.  Which loan do you provide the rate and term for; the rehab, or the conventional later?

1. If a newbie investor has access to a 401k loan for the down payment, how is that viewed by Hard Money Lenders? 

2. If using the 401k loan as a down payment, I assume it's best to wait until after a credit report and debt/credit is analyzed. Would you agree?

Great post, Travis.   I do have more lending questions, as I have a similar status to Ernesto. 

1. Is a HML more likely to lend money to someone in Ernesto's situation if they are doing a flip or plan to rent it?

I moved to Va 6 months ago, after two successful flips in Massachusetts. On Jan 1st I set a 90 day goal to complete a transaction in Va. Ideally, a BRRRR, but would flip if the deal made sense. Credit is 750+, 5k cash, $35k loan from 401k available if needed. So far I have reached out to every lendor recommended to me, and have not found any doing fix and rent lenders. I've been conducting market analysis as suggested by David Greene, Jay Scott and others. I've also visited several distressed properties, which are too distressed for me (major foundation or septic issues). Today I plan to speak with LendingOne and Spectrum Funding (https://www.spectrumfundinggroup.com). LendingOne only lends to LLC, however. I wasn't planning on setting up an LLC yet, but if that's the only way then I will do it. Finally, since we are renting to remain flexible, I will buy a house to move into and then rent it after one year and repeat. Not my preference, but I will not be denied. Any advice is welcomed!

Hey Sam, I just moved to Gordonsville and want to purchase property for buy and hold.   Let’s get together this week and see how we can help each other.

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