All Forum Posts by: John Guerrero

Hello Everyone,

I have finished the renovations on my first flip, and unfortunately the house is not selling as fast as I would hope. At this point, I'm stuck with a high interest rate from a hard money lender. 

I think my next step should be to refinance the mortgage to help slow the bleeding. I live in San Antonio, and wanted to see if anyone has any recommendations on what Lending entity I should use to refinance the house.  

Any recommendations and/or advise is welcome. 

Regards,

John

Thanks Everyone! I appreciate the help. 

John

Hey Everyone,

I recently started my first flip in San Antonio, and I took out a hard money loan from Sherman Bridge. I qualified for their 90/10 plan which means the loan is for 90% of the property purchase price and rehab cost. 

90% of (Property Price + Estimated Rehab cost)

At closing, part of my down payment is the 10% of (Property Price and Estimated Rehab Cost). 

Fast forward  a few weeks and I request my first draw for the rehab money.  Unfortunately, I find out that they will only give me 80% of the approved draw amount, and that the remaining 20% of the rehab cost is my sole responsibility. For example, I was approved for $4,051 but they will only fund me $3,439.80. 

Does this seem right? Is there something that I am missing? The way i see it, i already paid my 10% up front at closing, why should I be responsible for an additional 20% of the rehab cost?

Any clarity on the matter would be appreciated.

Regards,

John

Hey Guys, I am starting the demo on my first property in San Antonio. The majority of the house has ceiling tiles that need to go. However I'm not sure what to do with all the loose fill insulation in the attic. The house is under a flight path and it might provide noise insulation as well. Do you guys normally keep and reuse the insulation or do you discard it and get new insulation? Any suggestions? John

@Seth Teel thanks for sharing. I appreciate it. 

John

Hi Everyone,

I keep reading that it is a good idea to get a title search before making an offer on a property. I want to get recommendations on how to get title searches. What are other investors using? Title companies?  How much are they paying?

Thanks,

John

Thanks Rick,

I was under the impression that the city might ask to tear down the addition if the proper permits were not pulled. 

John

I am looking at a potential investment property in San Antonio, TX. This particular property has what appears to be an added-on extension to the house. There are several signs that would suggest this part of the house was not part of original structure, like the siding is completely different. 

My question is what kind of problems can this cause for me? and how do i determine if I should move forward with this property?

Thank You,

John Guerrero

PS. First Post!