All Forum Posts by: Doran Summers

I. Looking at this multi family and seeking guidance if this is a good deal.

3) 1986 buildings 3016 SQ FT EA2/1's 754 sq ft EA unitWD Hook-upsEA unit w/ private balcony/patio and storage Individual water and electric meters

5 units have been remodeled. Updated units are freshly patched and painted. Floored with carpeted bedrooms and tiled bathroom, the remaining living area has trendy vinyl plank flooring installed. Repairs to framing, trim, and plumbing. Cabinetry has been painted with new hardware. 2 new HVAC units have been installed. 3 other HVAC units are newer, leaving about 7 older units to be replaced in the future. Roof is only about 7 years old.

Are you interested in jv which the lender pays all fees and 10% to 50% profit split?

@Jonathan New the appraisal is based on the current value. For example if you purchased a buy, Rehab and hold Property for $50,000 and Rehab was $25,000 and arv is $150,000. The lender will base the appraisal on the new value of the home after the appraisal. So the new value would be around $150,000 and they would lend 65% to 70% ltv for a total of $105,000. So instead of waiting on 6 months to refi you can cashout in 31 days.

@Liz Kazeva the seller would have to take a 2nd position. I do t think a lender is going to take a second. The only way he taking a 1st is if he is the lender. Seller financing. Maybe you can work something out with the owner at let’s say 6% over X amount of years. Then if possible refi the Property to payoff the current owner.

Topically for buy and hold you would need at least 20% down. Does it need any rehab? If so then you may be able to get 90% loan to cost depending on experience, credit score, loan amount etc...

What’s your exit strategy? Are you looking to hold or flip?

@Charles M. you would have to held them for 12 months because they too small for the 31 day Refi program. The 31 days of ownership the value needs to be $60,000 each Property.

@Charles M. it’s too small for us. 

The only lenders I know that will ask for money upfront will be used for appraisal. Now if it’s a large commercial deal I’ve seen legit hard money lenders require funds upfront so the client won’t shop the deal once they get a term sheet. But stay away from brokers or lenders who require underwriting fees upfront. Most fees will be paid at closing anyways.

Is there actually legit hard money lenders who will do 100%?