All Forum Posts by: Kacper Rajewski
Kacper Rajewski has started 2 posts and replied 4 times.
Post: Does flipping small houses makes sense?
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Basically the title. Im talking about ~320 square feet houses 1 bedroom 1 bathroom. Is it easy (or even possible) to sell them when the main target grup is single individuals or young couples and they obviously have little or no money? Or are those properties mainly/only made for rental purposes?
Post: What is the biggest waste of money new investors make
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Quote from @Chris Seveney:
@Kacper Rajewski
Few things here. Yes while hard money lenders look at the deal they also look at sponsor. I tend to look more at the person than the property.
For example i turned down an opportunity to lend to someone who had done 2 deals and needed money to get to 50% LTV because they had poor credit, no assets
I then lent to someone at 75% because they had good credit, done 50 deals, and had personal guarantee with multiple properties owned outright j could attach too
I take risk into much greater account to protect my money.
well, that makes sense. Do you recommend other forms of financing to be able to get the money i want? I personally don't know anyone among my friends and family who would have the financial resources to lend me money i need
Ok so what is the logic behind the hard money? Let's say that i have a house to rent and the numbers are there and i cash flow lets say 500$. What if i wanted to buy another house...? And another. And another. And another. And... Is there's limit to where i can borrow money and they just don't care that i did my Excel spreadsheet and it turned out that there will be profit from that house? As far as i understand the loan is given against my asset and not against my credit right? The rates on the hard money loans are high so is there's even a possibility on making any profit?