All Forum Posts by: Lisette S.

Okay- update- After getting in deeper for locking in this duplex I found that to really get the 150K ARV I need to put in more like 30K max for rehab rental ready and ARV of 150K and the $750/unit rents. I believe I can swing this, but if I am going to be doing the rehab and keeping it as a buy and hold- I was rethinking my strategy and thinking maybe going with a rental lender? Like Visio? Anyone have experience with them or know anything about them or a similar product? My issue is getting conventional financing- long story- but I cannot get conventional finance until 10/2017. My total in would be $112,500 with an ARV of 150K. Is this a bad idea? After communicating with more people with boots on the ground outside of the broker I believe it is an area that is popping- I want to sit on it some for a few years until the homes around it are built up. I am seeing homes being sold in the 250-350K range- just a few doors down, above and below streets. Like the overspill is beginning at the beginning stages. I know it is above the 70% mark and more like 75 % mark, but is this a bad idea? Appreciate any comments from above or anyone else for that matter. @Aaron Cullen @Mike D'Arrigo

My head is swirling....my numbers appear to make sense in the long run- but I am not there and it is making me  spin. 

Thanks Aaron, Gives me an idea of HM and doing the first- they tell me I just need to get the first under my belt and I should be good. Thanks for the advise on getting pre-approved for a cash out refi afterward. I emailed you and appreciate the response. 

Not yet- I was planning on doing that once I have it under contract within 7 days- and prioritize scope of work not all windows need to be replaced and it looks doable from what I am familiar with here in California- unless labor is lots more expensive in Indianapolis ?

@Mike D'Arrigo

@Mike D'arrigo My plan was to use hard money for the short term and cash out refi within 11 months- at that time I should be able to qualify for a conventional mortgage. I may not have been clear about that. The hard money right now is bc of my lack of funds for a private money long term deal where they require 25% down payment at least. The rehab was an estimate given by my team (FSH) referred contractor - he gave an estimate for replacing windows, carpet, paint and clean, drywall in kitchen ceiling and appliances. They say the units are in good condition.

Looking for private money for an Indianapolis duplex in a gentrifying area of Indianapolis.  I have a verbally accepted offer for $82,500 on a duplex.  Need a pre-approval or proof of funds letter ASAP. 

I can place between 10-15% down for the property and have other funds to do the renovation of $13K, but am open to funding this as well, depending on the rates etc. I have solid comps to show the value of this duplex having an ARV of 150K after the rehab. I can rent each 3/1 unit for $750/month after renovation. My intention is to buy and hold it for the long term. I have called multiple hard money lenders- and have narrowed it down to a few, but want to make sure I am getting the best I can get and to establish a relationship for more future acquisitions- This is my first deal, but am confident in my numbers and the team I am working with on this acquisition as knowledgeable and trustworthy. As I have been shopping hard money lenders I am having a hard time settling and decided to put this out there and see if anyone can do better in lending me the money- so here I am as a last go around.

My FICO is 688- I have solid steady income and liquid reserves. 

Based on this info provided without pulling credit thus far, and my experience (or lack of) I have been quoted  3-4 points, another at  11-12% rate (an some cannot give me an idea of how much until I pull credit)- no pre payment, appraisal between 350-800, no prepayment etc. Closing anywhere from 10 days to 3 weeks. I am looking for 10% or below rate and  3 points or less.  Am I dreaming?  If I don't hear anything I will just go with what I have, but I thought putting this out MAY bring some lender- never hurts I figure. Looking to move quickly. 

I would be interested in looking at what you have. Email me at [email protected]

@Jack Shea, @Joe VilleneuveSo what I am hearing is that a checkbook SDIRA is best, but for now I would like to get started with ETC. I have this question into them since their times of operation are so off from mine on PST time.  When I did this loan I used an unsecured note (example provided by my realtor friend) to draft the one I used and it seemed to work, but what I also am wanting to know- is what would you do if or what steps to take should you lend and the note is not honored, because say the home did not sell etc?  I guess my mind just goes to worst case scenario to prevent it from happening, but I want some idea of what would need to be done? I am sure it's different state to state- but my doing my due diligence in process is on my mind.   I will have a lawyer, actually judge friend look it over just to make sure it is good to go though (good advise @Brian Eastman). My realtor advisor said to possibly make a flyer as something to network for realtors. I didn't think about title company- I have a few networks there, as well as REI groups.

I actually have a self directed IRA custodian- Equity Trust. They seem to make the process for lending very easy and doable, but I guess my question is more about a sample contract, and more info from people doing this type of lending that I can learn from?

Not sure if this is the forum to ask, but where could I find information on loaning money to investors for say rehab loans?  I don't want to loan for more than 9 months.  I have about 30K to invest. I recently funded a small loan through a realtor friend of about 5K and charged 10% for the interest on a monthly basis.  It was to fix certain things for a seller to be able to sell his home at a good price. It closed within 8 months etc and I made a pretty nice return on this, but how can I offer that up and make sure I lend it right etc.  The amount I have is not quite enough to invest in real estate for etc, but would like to grow it via this strategy, and am willing to use it to fund small deals for investors, such as rehab for short term etc.  What are typical terms?  Interest rates, documents etc needed?  Where can I find more information on this? I felt comfortable loaning through this realtor friend, because I knew the comps and possibility of selling etc.  I drew up a simple contract for the terms of the loan, and the realtor placed it as part of the escrow process, where I got paid once everything closed. I based it solely on the home and the possible selling profit amount to make loan.  Any leads for this would be helpful.  OR if anyone is doing this at a small scale and help is appreciated.