All Forum Posts by: Jackson Ebersole

Hi Dani,

If what you want is to acquire some real estate, I would recommend using that equity as a down payment for a property that needs to be rehabbed. I wouldn't use all of the funds on the down payment and closing costs but keep some of it to get the rehab started, as most private lenders will give you funds for the rehab after part of that rehab is done. Let me explain that better, imagine your rehab is $100k, you would need to do part of the rehab, maybe $10k, and then you can get the funds for those first $10k reimbursed so you can keep progressing with the rehab.

Given your experience, I would recommend you start with a moderate or light rehab, mostly cosmetic work so that you can do it yourself and won't get your profit decreased by hiring third parties. Also, private lenders will be happy to give you funds for small rehabs and that will help you build a portfolio of rehabs so that they feel comfortable to fund larger rehabs for you in the future.

We're a private lender, if you have any further questions I'll be more than happy to help you with those.

Regards,

Jackson

Hi Caleb,

From our experience, when flipping properties the most efficient ways to spend your money are the following:

Focus on kitchens and bathrooms, as these areas consistently provide the most value for your investment. A midrange kitchen remodel has a 96% ROI, costing an average of $27,492 and adding $26,406 above your cost in value.

You could also go for slightly larger rehabs, such as adding a bathroom or a bedroom. For example, adding a bathroom can increase your home's value by 10-20%, depending on the quality and type of bathroom. A full bathroom addition can potentially boost value by up to 20%, while a half bath might add around 10.5%. The cost of adding a bathroom typically ranges from $25k to $60k for a full bath, or $6k to $12kfor a half bath. However, you can expect to recover about 50-55% of your investment when selling the home.

Improve curb appeal, which is what you mentioned before, clean up the exterior, add landscaping, and make minor improvements to enhance the property's first impression. Landscaping has the largest ROI (of about 200%), adding a wood deck or a patio will also provide a big increase in value (100% ROI).

Add living space, consider converting attic space, finishing a basement, or repurposing a large living area to add a bedroom without expanding the home's footprint - this will give you an average ROI of around 75%. If you're going for a larger rehab, adding an ADU or doing an enlargement also provides a good return, although it is smaller than what we've seen before, around 50% ROI.

We're a private lender in Kansas City. If you have any more questions or are looking for funding please feel free to reach out to us.3

Regards,

Jackson

Hi Maria,

When flipping properties, cutting costs on materials can significantly boost your profit margins, however, you always want to maintain a minimum quality so my first advise on how to spend less is to plan the rehab in a way that optimizes the value return you're getting. Let me explain that: plan your rehab to change the things that are going to add the most value to a property, such as adding a bathroom or a bedroom, making a little expansion. For example, adding a bathroom can increase your home's value by 10-20%, depending on the quality and type of bathroom. A full bathroom addition can potentially boost value by up to 20%, while a half bath might add around 10.5%. The cost of adding a bathroom typically ranges from $25,000 to $60,000 for a full bath, or $6,000 to $12,000 for a half bath. However, you can expect to recover about 50-55% of your investment when selling the home.

Another good option would be to consider converting attic space, finishing a basement, or repurposing a large living area to add a bedroom without expanding the home's footprint.

Some other tips to help you save on materials while still creating an appealing finished product: buy in bulk, shop at discount stores and outlets, look for overstock, discontinued items, or slightly imperfect materials, attend auctions and Estate sales, incorporate reclaimed wood, vintage fixtures, or other salvaged items for a unique look at a lower cost, build relationships with suppliers...

If you have any more questions or are looking for funding please feel free to reach out to us, we're a private lender.

Regards,

Jackson

Hi Omri,

If what you want is to acquire some real estate, I would recommend using that equity as a down payment for a property that needs to be rehabbed. I wouldn't use all of the funds on the down payment and closing costs but keep some of it to get the rehab started, as most private lenders will give you funds for the rehab after part of that rehab is done. Let me explain that better, imagine your rehab is $100k, you would need to do part of the rehab, maybe $10k, and then you can get the funds for those first $10k reimbursed so you can keep progressing with the rehab.

Given your experience, I would recommend you start with a moderate or light rehab, mostly cosmetic work so that you can do it yourself and won't get your profit decreased by hiring third parties. Also, private lenders will be happy to give you funds for small rehabs and that will help you build a portfolio of rehabs so that they feel comfortable to fund larger rehabs for you in the future.

We're a private lender, if you have any further questions I'll be more than happy to help you with those.

Regards,

Jackson

Hi Kaylin,

We're a private lender. We lend money for RE investments. There are several reasons why you might like private lending when compared to traditional banking.

We provide much faster approval, there are fewer bureaucratic hurdles in our process. Traditional Banks have more rigorous approval processes, which can take weeks or even months.

We are usually more flexible with loan terms and conditions and are more aggressive with leverage (higher leverage compared to banks), while banks generally have rigid loan terms and conditions that may not be as adaptable to unique investment scenarios.

Private lenders are more focused on the potential of the investment itself rather than the borrower’s credit history or financial background. This can be advantageous if you have a solid investment plan but less-than-perfect personal credit. 

Moreover, we are often open to unconventional deals. This might include interest-only payments, longer or shorter loan terms, or different collateral arrangements. We might be more willing to finance projects that banks consider too risky, such as fixer-uppers or properties in less conventional markets. 

Please let us know if you have more questions. Regards,

Jackson

@Michael Opper, if we had the inputs, I could do some prelim numbers with my team and give you some advice. 

Hi Sam,

I'm a private lender in Kansas City. My advice would be to go for a private lender mortgage as this is your third property. Private lenders allow for much more exposure to a borrower than traditional banks do. As you have really good credit, you would be getting close to floor rates (mid 6s). Please let me know if you'd like to connect and get on a quick call to discuss this further.

Regards,

Jackson 

Hi Faiz,

Private lenders typically offer both bridge loans and term loans - 12-18 months and 30 year long loans respectively.

Within bridge loans you can find fix and flip, groundup construction, and stabilized bridge. This is for both 1-4 unit properties, and for over 5 unit properties (which are more tightly underwritten).

As for the term side, these are typically for properties that are in livable condition and are being rented out.

Please, feel free to reach out if you have more specific questions.

Regards,

Jackson

Hi Anna,

You're at the point in which it is best for you to find funding with a private lender. Private lenders allow much more exposure to a same borrower than traditional banks. You can buy many more properties without worrying about that.

Please let me know if you're interested in further exploring this option. 

Best regards,

Jackson.

Hi Hemant,

Private lenders will fund the construction of your ADU. They will typically request an architect's letter that confirms that the project is as of right and requires no variance, which tends to be the case. That would be a 12 to 18 month bridge loan that you could later refinance into a 30 year DSCR loan.
Let me know if you have more specific questions on funding so we can help you out with the planning and funding of the project.

Regards,

Jackson.