All Forum Posts by: Rob Beeman

Yes, you read it right - NON-Recourse. What's the catch?  Simple, here are the stats:

Min. loan amount of $3MM (min. property value total of $4.5MM); properties can be in different states (as long as we lend in those states); Properties can be owned by different LLC's (they will be transferred into a SPE (Special Purpose Entity) as part of the loan process); NO STR's (short term rentals) allowed; maximum of 70%LTV; portfolio can be one property or more than one to make up the collateral and loan amount; must have been owned for at least 6 months if it is a refi loan. This loan is perfect for the landlord with a portfolio of properties seeking rate & term or cash out refi, OR seeking to purchase a portfolio of turnkey rentals.

Message me your contact info to discuss further.

Gabriel, I might be able to assist. It is not what I would call hard money, but here is the summary of what can be supplied:

100% financing of the purchase & rehab amounts OR 65% of the ARV (after repaired value), whichever is less on 1-4 unit properties, for borrowers that have done 3 or less transactions in the last 3 years (it sounds like this is you).

Minimum loan is $75K, and that would make the minimum ARV $115.5K.

Do not loan in "rural" areas. The loan is supplied to your LLC and the additional guarantor(s) must have a Min. mid-FICO of 660+.

Feel free to message me if I can help, Rob

Eric, if financing for purchase & rehab amounts is needed on the 1-4 unit deal that you find, I may be able to assist. We offer non-experienced operators (or lesser experienced of less than 3 completed deals in the last 3 years) 100% financing of the purchase & rehab amounts OR 65% of the ARV (after repaired value)(for experienced operators we go to 70% of ARV), whichever is less. It might accomplish 3 things: (1) lower your cash in the deal (2) create a relationship with a direct rehab lender (3) be able to tap my mind, as besides being a seasoned lender, I am a seasoned flipper. Shoot me a message if I can help, Rob.

Ever wish you could invest passively?  NOW you can invest like the rich do, while they sleep! 

Learn PASSIVE INVESTING FOR THE AVERAGE PERSON, PLUS AWESOME networking! 

REGISTER here: https://hopin.com/events/knowledge-networking-february-2023 

NO SALES PITCHES, just Knowledge & Networking! 

Attend from anywhere.....its virtual! 

See you there.

@Angelo Aponte  I sense that you located what you were seeking, and hopefully it is in a spreadsheet format as it is easier to calculate, and adjust for each project. From both a flipper's and lender's point of view, its best to be very DETAILED on the SOW (scope of work) as this could help with working with contractors (and their payments) and any rehab lender (and their draw requests).

Example: instead of just having a line item for tile installation for $8,550, break that down to where, what cost and how many square feet for each area. Such as: Install 300 SF kitchen tile @ $4500. Install 150 SF bath tile @ $2250. Install kitchen backsplash tile @ $1500. Install 20 SF foyer tile @ $300. This way it is easier for a rehab lender to pay the portions that are done, instead of trying to GUESS what amounts to pay for the areas that are tiled vs the total cost for tile projects. It also makes it easier to pay the contractor for only the tile that is laid. Hope this helps.

@Tim Craycraft  Tim, although I am no longer an active flipper, I flipped in multi-states for a decade or more, and am always happy to offer my opinions. Additionally, I migrated from flipping to lending so since I have been on 3 sides of the table (buyer, seller, lender), I might be able to help you see projects from the lender's eyes also. Good luck, Rob.

@David Miller  Along with the other responses - NO!!!

If a contractor wants to be a flipper, you are better off introducing them to a rehab lender and let them handle their own project(s). Besides all of the items already mentioned about why its a bad idea, another is that at this point, it is likely that the contractor that I assume you are using on flips doesn't know the income earned on each project (they only know what their fee is). Once they discover that profit figure you run the risk of price increases from the contractor. Best not to muddy the waters, and maintain the contractor for their services only (not as a partner).

If the thought of taking on the contractor as a partner was because of making it easier to have the total funds needed for a flip, perhaps consider one of 2 other options:

1.) Take on silent partners (low amounts of membership)

2.) Search out a rehab lender that lends close to, if not 100% of the purchase & rehab amounts (can suggest one).  Or a combination of both options.

@Account Closed  Just sent you a private message with a contact. Rob

@Adalberto Alvarado

@Adalberto Alvarado

@Abraham Lowy Few items:

1. Always insure your assets! No one can predict the future and replacement cost from being uninsured has the potential to destroy your business.

2. The most important figure in any purchase & rehab formula is the PURCHASE PRICE. 

3. The required element in order to gain the property at the proper purchase price in your formula is a MOTIVATED seller. This is best found when NOT buying where everyone else does (MLS, auctions, REO's,etc.) and dealing directly with the motivated source.

4. When you plug in your PROFIT as a COST in your formula, you stand a better chance of accomplishing the profit figure. Treat it as a cost, no different than the contractor fees, utility fees or others tied to the project. The only difference is that you are paying that cost to YOU, and work the calculations backwards, beginning with the ARV and subtracting all fees/costs to get to the maximum purchase price that will make sense. Overpaying on the purchase price will lower the profit figure (as the other figures in the calculations are less able to be adjusted).

5. As a rehab lender, we have borrowers gaining properties under the 70% rule, however they are buying OFF MARKET, often NON-Advertised properties. In some cases they might by from a wholesaler vs sourcing the asset themselves, but almost NEVER buy off the MLS. So, yea, they are earning a better profit, but they are also working hard to locate those deals.