All Forum Posts by: JD Causse

I am looking at a foreclosure auction where the house looks in great shape. I was able to check the property and it looks great inside. Only major concern ... when the owner abandoned the house and their power got turned off, the sump pump stopped working and the 1800 sq ft basement has now 2 feet of water! I estimate the basement could have been flooded for several weeks. I realize that could be one of those nightmare flip scenario

I am trying to get et an estimated repair cost. I tried a couple water remediation specialist but no one even wants to give me a range for estimated cost without an onsite -visit which I can’t arrange!-

My options if I decide to bid for it are:

1) to plan for a large remediation cost... but no idea on how much to plan... 50k? Any  experience anyone?

2) plan for gutting the entire  basement and not repairing it, selling it as unfinished basement... probably still some cost for water remediation but should be much less

thougts anyone?

I have several of my properties in an LLC for asset protection but I have had a really hard time finding financing companies willing to offer cash out refi to implement my BRRRR... because my properties are held in a LLC!. I tried many local small bank and I don't understand why no one will touch it when there is plenty of collateral value to secure the loan! My personal credit score is great...

so much talk about BRRRR... I am sure I am not the first one doing this with a LLC!

any lender recommendation?

Most bank I have checked wont give you a HE loan on properties held in a LLC. I dont really want to move the properties out of the LLC... would you know lenders that would offer a HE loan on properties held in LLC?

I have an offer for doing a commercial loan on my first multi property sixplex!

As I was working on it, I started to wonder... « what will the typical lender expect from my numbers before approving me in terms of cap rate, cash on cash...»

For example...let’s say I am confortable with a 7% cap rate when the market is 9%... or if I am confortable with a low cash on cash ratio lender might not like it... I don’t want to pay 10k+ in appraisal inspection and other fees, only to be declined by the lender for not liking my deal after underwriting, right?

So would anyone has some experience and tell me « ball park » key ratios not to break in order to get likely to be approved by lenders. Their tolerance for risk or low return might be different from mine... better have an idea before placing a offer and putting earnest money

I am sure the answer is it depends on lenders... but some experience from anyone knowing what typical lenders want to see before approving?

Hey! new to the site and loving it... 

 I was wondering what tool or link do people use if they want to do a study of a neighborhood... like if you think you found a good deal out of state but you want to know if this area is going down or has an upside... any tips or link you would recommend?