All Forum Posts by: Kyle Ransom

My pleasure John

Generally with a HML they will fund 100% of the rehab cost. You will need to provide 10-20% of the purchase price and pay the closing cost and points, if the numbers are at or below 75% of the after repair value.

You will also need capital to buy the materials to start the rehab. I am not sure why yoru lender ask you to put money is escrow unless the rehab costs put the loan over 75% ARV. Otherwise this is not he norm.

Usually if you want to do a cash-out refi you need to own the property for 12 months otherwise most lenders will only do a rate and term loan for you if you owe money on it. If you own it free and clear usually you will need to wait 12 months to season the note. If you did find a lender to cash you out now the money will be expensive.

I good way to crunch your numbers is to of course know the repair costs, the ARV and purchase upfront. Hard money lenders will lend up to 75% of the ARV. Expect to put down 10-20% of the purchase price and they will fund 100% of the repairs and pay the contractors via draws once each stage of the repairs when they are complete.

A little tip they don't tell you about in fix and flip school. Always try to wrap 6 months of the interest payments in the loan. This will require that you buy lower the 75% ARV which I do the advise anyway. Back out your numbers so that you don't have to make monthly payments on the loan while you rehab the property. It will save you a ton of headaches and stress.

Hi, am driving into short term rentals. Can anyone tell me what is the total cost to the stage and carry including all expenses for a short term rental if I sublease the property for :

3/2 SFH

2/1 SFH

1/1 apartment.

Very much appreciated

this would be considered a small balance loan and your best bet to go to a local bank if you have strong financials and credit. Non-bank small balance CRE lenders tend to charge higher rates.

I am not aware of HELOC for commercial real estate. If you owe less that 50% percent of the value of the property and you owned it for more that 12 months you can do a cash out refi or a second. However the 75% owber would have to be the borrow and have the credit and financials to do it. Lender is general will be more open to to doing a low LTV cash refi then doing a second.

BP has a free tool to help you analyze your deals

going bis works for me. You have to spend the time and energy anyway. Fortune favors the bold. 

Your rate will depend on a few factors and they are your credit, the financial statements, the property income, condition, and value, your down payment and of course the term. If you are strong with everything above then you will get the best rates. Also, 15-year rates get you the lower interest rate compared to a 30-year note.