All Forum Posts by: Frank S.

Quote from @Greg Scott:

Typically yes.  However, a hard money loan is a private loan so the lender can set terms as they like and you can decide if you want to accept them.

How does the lender know what's reasonable in regards to rehab costs ? What's to stop me from hypothetically inflating rehab Costs to increase overall loan to cost and subsequent loan amount ? Does the appraiser/appraisal determine if rehab costs are reasonable?

I found a property for $220k , which needs approximately $60k in rehab. The lender said they would loan 80% Loan to Cost or 70% ARV. If ARV is $350k, then the lender would lend on the lower of the two I assume? Which would be 80% Loan to cost or $220k + $60K = $280K x 80% = $224k. If the purchase price is $220k does that mean I dont have to come to the table with any money, aside from closing costs? I would just have to pay rehab costs?

Originally posted by @Todd Groom:

NY market from everything I have read and seen has imploded. I am not sure if its just the city or the state but there is a mass exidous to other states. They are calling it Pre and Post bandwidth. Meaning pre-bandwidth companies had to have large amounts of office space and employees had to live close by. The owners had to still live with in reason. But now they have learned that ISP's have the bandwidth at home and they no longer need millions in office space. So places like Utah, Florida, Nevada and more that do not have state taxes are being flooded with these employees and owners. Our market in Tampa is exploding here. Market rent is soaring as everyone is staying in place and new ones are moving in daily. 

I have read this may not be the same as 9/11 or the 08 crash and that New York won't recover like it has in the past. So we shall see in the coming years. I have seen commercial realesate in the city has been cut in half. Store front, ground floor, front facing is going for $35 a foot in some places, Insane. 

 NYC and buffalo markets are nothing alike but I do appreciate your feedback. If anything,  the buffalo market has been gaining residents from NYC

In my area (Buffalo, NY) , ive noticed properties aren't selling as fast and most arent getting multiple offers like they were during the summer/spring months. Is this simply a normal cycle that happens after summer is over, or is there something more here?

@Jenni Utz

You raise a valid point about pending foreclosures for people who are currently in forbearance / deferring their loan. However , the foreclosure process, at least in my state , is not a quick process and can easily take 18 months. I don’t see a rush of foreclosed homes coming into the market anytime in 2020, if anything I’d expect prices to settle mid 2021, but until then I’d continue to buy.

Agency (Fannie/ Freddie ) will provide non recourse loans for multi family properties. Max LTV is 80%

@Chris Mason

Ok makes sense . So a mortgage is out of the question but from the other responses it seems as if a line of credit most likely won’t require an inspection . That’s probably the route I’ll take

@Frankie Betancourt

You can use the PayPal credit card reader . Swipe your credit card and the funds will be available in your PayPal account which you can then transfer into your bank account . PayPal will charge a transaction fee of somewhere around 2.5%, however.

Hypothetical question - I own a house free and clear and would like to take out a home equity or mortgage to fund an investment property purchase . However, due to an ongoing tenancy issue an interior inspection for the appraiser would not be permitted . Will any lenders lend without seeing the inside of a house ? If so , what's the typical max LTV on something like this ?

I’m located in New York and would like to buy an investment property near a Florida beach . The plan would be to rent the beach house out on Airbnb. Is this possible with only 15% down ?

Also in your experience, how many months does it take until the property is cash flow positive ? How much reserves should I set aside ? I’m primarily looking at smaller single family homes near beaches that aren’t currently used as a short term rentals.