All Forum Posts by: Harold Rutila

Quote from @Bobby Feinman:

Harold

Happy to try and assist. Let me know if you want to jump on a call

 Thank you! I will send you a PM.

@Aidan Dobbins yes, that is a good point. I thankfully did receive some messages from a few lenders. The broader point of reducing the loan to just the reno was to reduce the amount loaned, but to your point, most will presumably want to lend on the purchase price to secure a lien for after the refinance. Thank you for your comment!

@Bob Reinhard Thank you! I like your mindset tip.

The post title sums this up! I purchased a vacant single family home last October. It was $75,000. I spent the last year doing major utilities and security improvements with my own funding, and now am in need of about $120,000 to have a reputable contractor complete this fix and flip. I am planning to rent and refinance it when the project is complete. I am fine leaving my money in the deal (ie. I do not need cash out at origination of the hard money loan), but I have not found any hard money lenders interested in following up with me about this project. I had one lined up last summer, and then their terms changed, which made me ineligible because the property's ARV will be about $220,000, and not the $250,000 that they now require.

I know that lending is tightening up across the board, but perhaps someone on this forum knows of a firm I can use to get this project done. My contractor is very reputable and is excited to complete this project.

Quote from @Drew Sygit:

@Harold Rutila why have you been sitting on it for almost a year?

Recommend you hurry on this as a recession will make it harder to get a loan.

Work has been ongoing. It’s not strictly a cosmetic rehab because we had to do major utility work first. The next phase is more normal, and we feel we can keep to a more rigid timeline now that the first phase is out of the way. I agree with your sentiment!

I'm not a contractor, but I have this issue in my primary residence and have researched it quite extensively. As @Jack Seiden states above, the issue is with your subfloor. Jeff Thorman at HomeRenovisionDIY has a great video on YouTube about this and why it occurs.

In all likelihood, you are dealing with a nailed-in subfloor that squeaked even before the new flooring went down. The fix involves removing baseboards and then removing your flooring to expose the subfloor. You would then need to identify and screw down loose subfloor boards, possibly replace some if you find any damaged, and then reinstall the flooring. Some types of flooring are easier to reinstall than others.

The sound deadening issue is a whole other animal. I'd again refer you to Jeff Thorman at HomeRenovisionDIY for a comprehensive review of different sound deadening options here. This will probably require insulation beneath the existing subfloor, so you could tackle that job first, then proceed to fix the subfloor squeaks afterward.

If you want to avoid doing these as DIY projects, your best bet would be to try and find a flooring contractor, or perhaps even a handyman, who would be willing to fix this problem. My experience is that a lot of these types of contractors, unfortunately, might not be interested in such a job, but call around and ask for referrals until you find someone who is.

I would also caution against installing new flooring over the existing wood flooring. This can be done with a softer surface over a harder surface, but I think you'd be asking for trouble by adding an additional layer without addressing the underlying problems. This is akin to siding contractors in my area who think it is acceptable to install vinyl siding over mid-20th century aluminum siding, and then wonder why they get call backs when it starts to fall apart. Strip it down and start over.

Hey Mike, are you able to post the numbers from the BPCalculator on here? That will provide some more in-depth replies.

Quote from @Mike Klarman:

Yes, I have borrowers do this all the time. A title company can do a quitclaim deed which transfers ownership to you.  It’s a fairly simple process which includes signing in front of a notary and a witness.

We usually have the borrower do it at the closing but you certainly can do it before.

Thank you, Mike. The quitclaim option is one I hadn’t yet considered. I appreciate your reply.

Hello BP Community,

I purchased a vacant home as an investment property in cash last fall. The acquisition cost was $75,000. The ARV is roughly $220,000. I have located a great contractor to do an exterior renovation but am likely going to need a hard money loan to fund it. The exterior renovation will be roughly $50,000.

As of now, the property is in my name. I understand hard money lenders will typically only lend to LLCs. I have an LLC already set up and could transfer the property into the LLC in order to take advantage of this. Can someone who has done a transfer into an LLC for the purpose of accessing hard money verify if this is a good way to proceed?

Thank you!

@Chris Munoz, what route did you end up taking?

@Drew Sygit Thank you for your reply. The address is 14535 Longacre St, Detroit, MI 48227.

My comps were way off. Had a realtor check into comps for similar homes in better condition, and the average is between 144,000 and 155,000. While a full-gut rehab is probably not necessary, adding a second bathroom and making cosmetic upgrades is the plan, if my offer gets accepted.

I have a revised analysis here: https://www.biggerpockets.com/...

Thank you, @Yoann Dorat. I have determined this will need to remain as a SFR due to zoning regulations. I appreciate your perspective on avoiding lengthy turn around times on the rehabs. I'm going to get an inspector and contractor in there as soon as we get an offer accepted.