All Forum Posts by: Deric Gwinn

Sounds like the investment broker is a wholesaler and I have a good idea who it is, or someone just like them. If it’s who I think or similar they might be double closing the property at the same time and that’s important to know when talking to any lender about the deal. 
I am a HML and I'm always happy to hop in a call or zoom and let you fire questions at me and give you my perspective as well as best practices and what you might expect in a transaction such as this. I've worked with many BRRRR investors and can consult you on whether a HML is a good fit and if the deal makes sense in todays lending environment.

I agree with Derek.  We do not report to the credit bureaus, but we DO run your credit.  The simple reason we do this is that even though we are lending ON an asset, we are lending TO a person.  Assets don't borrow money; people do.  Generally speaking, the difference in borrower qualification from lender to lender is a bit of a gauge on their tolerance level for taking a property back.  Some lenders are completely ok with taking properties back and others really want to avoid it.  Its a difference in business model.  

Always happy to discuss more...

Investment Info:

Condo fix & flip investment in Scottsdale.

Purchase price: $170,000
Cash invested: $42,000
Sale price: $269,300

This was a fun project outside of dealing with the HOA. Bedrooms and baths were cosmetic. Fully gutted old kitchen and remodeled with an added island. Removed a post to open up the space. Removed soffits in the kitchen containing HVAC ducting to give more headspace. Had to add the ducting to the flat roof and re-foam, which required architectural change request from HOA. This delayed us about a month but the end result was well worth it. Space turned out great.

What made you interested in investing in this type of deal?

We knew the area was hot and location was perfect. This had potential to either be flipped or converted to a short term rental. The actual community was mostly older (in age of owner and condition of units) but were slowly beginning to be updated. We felt confident in our ARV. Our budget grew slightly due to some changes we decided to make mid rehab, but they paid off with a quick sale.

How did you finance this deal?

We used hard money on this deal.

How did you add value to the deal?

By reconfiguring the kitchen and removing the low hanging soffits, we updated this condo to the standards buyers would be looking for in this complex. Buyers paid cash and are using as a second home.

What was the outcome?

Fairly quick sale and we made a nice profit.

Lessons learned? Challenges?

This condo complex was on a land lease, so we had a learning curve with regard to those limitations and how to sell it. We had a great realtor as well. Dealing with the HOA was also somewhat difficult. They were resistant to change.