All Forum Posts by: Katie Smith

Hi Ayyoub! 

I'd recommend creating an LLC with both of you on it! You can then get a HML, put the rental in that LLC so it protects all of your other assets. A lot of investors will create new LLC's for each rental, so that in the case of default, they can only go after what is in the LLC that owns said rental. I'd love to hop on a call to go over this more in-depth.

Hi Shaun! Would love to connect with you and see how we could work together. Are you looking for deals or are you sourcing them?

Hi Rigo! Are you attending your local REIA's? They are hosted in every metropolitan area. I would highly recommend checking these out each month, along with any networking events in the area. You can find them posted on facebook, eventbrite, meetup, etc.

HI Elvis! I would check on Eventbrite & Facebook for your local events! 

Hi Brooklyn! Do you know how long you would have to close on the property? HELOC's take quite some time, so if you haven't started on that yet, I would recommend doing so asap. Once you have the HELOC funds, you should look into a loan option that covers the rehab budget. You do not want to have all of your funds tied up into one deal, so going with a lender that can cover most of the purchase price and all of the rehab budget - would be best for you. Make sure the rehab budget is non-dutch, so you are not paying interest on it until you begin to use it. Most lenders require you to have 6 month seasoning to do a cash-out, but I do know of an option that cuts the seasoning period down to 3 months. Would love to connect!

Hi Evette! What title company are they using? Do they own the title company? If so, that could cause issues on the back end - not a lot of lenders will let the wholesaler use their own title company due to hiding issues, etc. I'd like to learn more about the situation and see if I can point you in the right direction.

Hi Aldo! 

I am not 100% sure what will qualify you with an FHA loan - maybe someone else can chime in for that. I can tell you to qualify for a hard money loan, which is a business-purpose loan (so this would be for investment properties, not a primary residence). They require you to have at least 3 tradelines, which can be credit cards, auto loans, a mortgage, personal loan if recorded. Are you looking to purchase an investment property or a primary residence?

Congrats Jim! Is this your first time flipping? Having a BP community behind you definitely makes it a lot easier & safer. I'd love to hear how everything goes, about both your highs & lows. Have you thought about utilizing OPM (Other Peoples Money), so you don't have all of your cash tied up into one deal? I'd recommend using a good lender that covers the rehab budget - so you are not out of pocket for the purchase & rehab amount. I'd be happy to connect.

Hi Ronnie!

I wanted to follow up here and see if you were successful in connecting with any Miami investors/flippers? I'd also like to connect with Miami wholesalers. We are located in Orlando FL, and I have plenty of clients looking for good deals all around the state. Do you have a preferred lender? I'd love to connect.

Hi Helena! Where are you looking to purchase rentals? I would highly consider using a reputable company and opt for a Debt Service Coverage Ratio (DSCR) loan for a rental property for several reasons. First, a reputable company often provides professional guidance and expertise, ensuring a smoother process and better outcomes. Secondly, DSCR loans offer favorable terms and lower risks, as they assess the property's ability to generate sufficient income to cover debt obligations. This reduces the likelihood of financial strain and improves long-term profitability. Ultimately, leveraging both a reliable company and a DSCR loan maximizes investment potential and safeguards against unforeseen challenges in the rental property market. Look into a good hard money lender! Hard money loans are business-purpose loans - so you will need to do it under a company. Doing so will provide liability protection and shield your personal assets from potential lawsuits or claims related to the property.