All Forum Posts by: Shaka Farrier

Flipping a property in the lower 200k price range. The existing structure has yellow aluminum siding. I will be adding a 12x24 addition.

Should I install metal siding or vinyl? I hear the aluminum is a bit hard to find and deal with

Any input would be appreciated 

 Looks like he did a great job. We're the ceiling paint prior to him sanding the texture down? 

Hey Mark, any luck finding a lender? I could use one as well

Hey BP, I hope all is well. I'm wanted to get some opinions about a seller financing deal in about to land here in Norfolk, VA. I have been thinking up ways to not use my cash or maybe just a portion of it on this deal.

Here are the details

After Repair Value: $80,000

Repairs: $10,000 - $15,000

Purchase Price: $20,000

Down Payment: $10,000

Promissory Note: $416.67 for 24 months (the other 10k for the purchase)

Payments are deferred 6 months. I have time to rehab it before I start paying her

Interest: 0%

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I have:

$10,000 of my own cash

$10,000 Business Credit Card (10% interest)

$15,000 Business Line of Credit (16% interest)

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I'd like to keep it as a rental. I could get around $1000/month. Thanks in advance everyone

not yet. Feel free to message me information about your business

I just got a business line of credit for 15k and business credit 10k WITH a personal guarantee from navy federal. All they did was run my transunion....thats it!!! I didnt have to show income docs or w2s as long as it wasnt more than $25,000. 

i dont know if any other banks do this but i think its great. im trying to figure out if i want to use this for my down payment as well

Well said Joe

Hey BP, I hope all is well in your ventures. I am working on getting approved for funding for my first fix and flip and wanted your opinions on possible doing it this way (without spending much (or any) out of pocket money)

Current situation:

Business Line of Credit : $15,000 @ 16%

Business Credit Card: $10,000 @ 10.9%

(Zero balances on both)

Liquid Reserves: $10,000 (personal account)

Here are my hard money lenders terms:

Finance 90% of Purchase + Repairs or up to 75% of the ARV, whichever is lower

12.99% APR

3.9 points at closing + credit line admin fee (if applicable)

2 year term

No pre-pay penalty

I plan on purchasing low at first. I'm looking to be $60k-$75k all-in (property and rehab)

My questions are:

1) My lender recommends having 20% capital upfront. 10% for the downpayment, 4% points and 6% for cash reserves. He also requires a bank statement(s) to show that I have the liquid available now (it does not need to be seasoned).

I'm thinking about writing a check to myself for $10k from the BLOC (business line of credit) and putting it in the account with my $10k reserves. That way I can show the 20% he needs to see on my bank statement.

Heres the tricky part I need help with:

After he approves me and I receive the proof of funds, can I take the $10k I moved from my BLOC and put it back to avoid having to make a payment on it? I figure, once he sees the funds in an account via the bank statement, why keep the $10k in that account if I won't need the entire $20k to get the flip started.

2) What would you consider a good ARV for this borrowed amount to work? I want to make sure that when I get the comps pulled prior to making an offer, I will have a decent spread to profit.

I hope I explained this without confusing everyone. I look forward to seeing your responses

Hey BP, I hope is well in your ventures. I am working on getting funding for my first fix and flip and wanted your opinions on my way in without spending much (or any) out of pocket money.

Current situation:

Business Line of Credit : $15,000 @ 16%

Business Credit Card: $10,000 @ 10.9%

(Zero balances on both)

Liquid Reserves: $10,000 (personal account)

Here are my hard money lenders terms:

Finance 90% of Purchase + Repairs or up to 75% of the ARV, whichever is lower

12.99% APR

3.9 points at closing + credit line admin fee (if applicable)

2 year term

No pre-pay penalty

I plan on purchasing low at first. I'm looking to be $60k-$75k all-in (property and rehab)

My questions are: 

1) My lender recommends having 20% capital upfront. 10% for the downpayment, 4% points and 6% for cash reserves. He also requires a bank statement(s) to show the funds (they do not need to be seasoned).

I'm thinking about writing a check to myself for $10k from the LOC and putting it with my $10k reserves. That way I can show the 20% he needs to see on my statement.

Heres the tricky part I need help with:

After he approves me and I receive the proof of funds, can I take the $10k I moved from my LOC and put it back before I have to make a payment? I figure, once he sees it in the account via the bank statement, why keep the $10k in the account if I won't need it for the down payment or points.

2) What would you consider a good ARV for this amount to work? I want to make sure that when I get the comps pulled, I will have a decent spread to profit.

I hope I explained this without confusing everyone. I look forward to seeing your responses

hey @Daniel Kelly I'm here in the Noview area of Norfolk. Prior active, currently reserve. I just bought a duplex with my VA loan and decided to house hack. I live upstairs and will be putting my downstairs unit on the market in February.

I think that its totally up to you and your current situation in regards to which route to take. What are your thoughts about each? (Buy n hold and fix/flip)