All Forum Posts by: Frank Geiger

HMLs I know are at least 10%-11% minimum with 1-2 points. You are thinking more like private money rates. That takes relationships and networks to build. I don't think that's feasible to obtain in 2 weeks.

Honestly if a 10% HML loan kills the deal, its not a good enough deal.

Discoloration and water damage specifically along the drywall, under sinks/bathrooms, and attic. But also check throughout the entire house.

I also recommend snaking the pipes with a camera. That can be another big unforeseen expense.

Not 100% sure but I imagine if it is part of his standard application process and performs this inspection to all potential candidates, then it is okay. 

Insurance seems high. Did someone quote you that? Aren't the property taxes in Chicago super high? That's only $2800 a year. I expected more like NJ/NY numbers.

Normally, the less you have into the deal the better returns you will get. Not every deal is the same so it may take a bit of a balancing act to choose the right combination. Ideally, you want to choose a combination that maximizes cash flow with a low downpayment. 

It's part of their contract to pay on time. I believe if you can rent the property for $870 a month then it should all go to you. Not sure if you'd receive any benefit from this but you can test it out.

Hopefully you learned to be aware of some of the people in this business. The lessons you learned will benefit you in your future investing. We all make mistakes. Most of what you need to know can be found on this website. Good luck going forward.

Rent and vacancy rates can be looked up for every county. Usually homes away from cities cost less; so it may balance out a bit more. For the most part, there is a demand for rentals in every market.

See how much you are pre-qualified for and bounce that off the rents. That should give you a ballpark price point and somewhere to start. Then explore different neighborhoods that fit that criteria.

Some HMLs wont even lend on a project that small. They will probably want you to have 20-25% down of the total project costs. I would do conventional if you can. PLOCs and Personal loans maybe an option to fund the rehab. But if you truly have no money, then wait till you have some money saved up. You don't want to get caught in that position.

What about the CAPEX items? (Roof, furnace, hot water heater, etc) Those need to be fixed/replaced in most cases before selling as well.