All Forum Posts by: Jon S.

I would not do this if you are inexperienced with this contractor.  15% - 25% is fair, but 50% is a major red flag for someone you do not know.  I would explore other options.

@Jon Davison.....this is inaccurate. You do not have to have an LLC set up to work with all HMLs. In fact, if you are a buy/hold investor it may be to your detriment. It is often difficult to refinance out of a hard money loan if the loan is in the name of the LLC. Investors typically have to use specialized or portfolio lenders for these scenarios as FNMA does not allow it.

If you are building a rental portfolio you will need a good HML, a long-term lender, and potentially a larger term loan provider.

I recommend Beth Linson as a local long-term lender.  She works at PRMG in Indianapolis and has a lot of experience with investors.

For a term or blanket loan I recommend Corevest.  Once you reach the FNMA threshold of 10 properties financed, they are a very good option to consolidate the notes.

Happy to help with any other questions.  You can PM me anytime.  Thanks.

@Tchaka Owen are you flipping or building a rental portfolio?  Different lenders have various options depending on the strategy.

Adam Williams

He is an investor and wholesaler as well.  Experienced on all sides.

https://www.apwrealty.com/

James Abner

http://www.abilityplus.com/agents/24241-James-Abne...

The term would depend on the renovation requirement.  If there is significant rehab, then 6 months would be tight.  Negotiate a 9 or 12 month term if possible.  If not, make sure extensions are available.  Since it is your first deal I would encourage you to stay away from large rehabs.  $40,000 or less would be reasonable and should allow you to stay within a six month term.

Julie,

Typically you can utilize a HELOC, but you will need to source and season those funds. The payment would also be included in your DTI calculation, so you would need to make sure it still qualifies. Different programs require different qualification hurdles.

I don't know all of the details of your situation, but if you are buying a rental that needs renovation it is typically better to use a private or hard money lender and then refinance.  Using this method you are using capital from the lender in lieu of locking up your own or dipping into equity from your primary.

Contact Adam Williams.  He is an investor friendly broker.

https://www.apwrealty.com/

I recommend Adam Williams.  He can help you find off-market investment opportunities as well.  Thank you.

https://www.apwrealty.com/