All Forum Posts by: Mark Miller

So, honestly, I want to get into flipping. I am new. Very new. I know nothing about home repairs, and honestly, I plan to pay a contractor to do all that, simply because I value my time. I was looking at financing options, because obviously, I need to know everything. Lima One is who I was primarily looking at, but I am still looking around. It looks like 90% of current value + rehab and 75% of ARV, which seems basic, but that brings me to question number 1. obviously, the loan term is 13 months. Are these loans generally interest only with a balloon payment at the end? I have made the assumption that it is better to over estimate rehab costs, than to under estimate them, despite paying interest on them. If that is wrong, let me know, because again, I know very little about home repairs. I was also wondering if anyone knows if any lenders can provide you with trusted contractors, or if I should just ask people at my local REI club?

Long story short, I am a wholesaler, but something interesting came my way, and I want it, or I think I do.  I have never owned rental property, but I plan on hiring management since the property is out of town.  An older man wants to sell me 3 of his rental properties.  I looked at them already and they are rent ready, no issues, literally no repairs needed.  The properties are already rented, and have been occupied for 3-5 years each.  He bought them discounted, and only wants $100,000 for all three.  Current taxable value from the county puts all three combined at $210,000.  This is where my questions come up.

Currently, I am speaking with a private lender to give me 100% of all money +closing fees.  Should I have all three properties on separate contracts?  Would this make a difference when refinance comes.

Assuming I do refinance in 6-12 months.  Should I inform the private lender that that is my plan?  Do they need to know?

When I refinance, will I basically be getting the appraisal difference minus financing fees?  That is what it sounds like, but that seems too easy to get a property for such a discount.

I already have a docusign membership, and all my forms on there.  So basically, if I see a property I want in another state, I can initiate it all with my title company and go from there?

Obviously, there has to be a way to close on property out of state, without going to that state and closing with a title company there.  Can someone with experience cover this topic with me please.  I can't find a youtube video or anything covering it.  Would I simply arrange it with my title company to work with a title company near the property?  

@Jaysen Medhurst so, thank you for the information. Are you saying that I should basically do a fix and flip loan then convert it to long term be lending using a refinance or helix?

@Shelia Moore I would review their contract first. I had something like this come up and they wouldn’t close with my title company nor would they use my contract.

I am a wholesaler, but two properties came my way that I have no intent of assigning, as I think it's time to build my portfolio.  Both properties are next to each other, one is a duplex, the other a Single Family home.  I can purchase both properties for $60,000.  The Duplex alone is worth $78,000 and the Single family worth $22,000.  Both need cosmetic work and minor repairs.  I am not a do it myself type, so I plan to pay to get everything fixed out of pocket.  Couldn't I just refinance right away and get all that missing equity back?  Then use that money to fund the repairs?  I am not familiar with refinancing, and apparently most refinancing calculators aren't designed for investors.

@John Thedford, this might be off topic, but truthfully, you are correct is what wholesalers can't do, and licensed agents and brokers can.  Now though, wholesalers can, legally, sell the equitable interest in a property, and most real estate contracts include assignment.  A "good" wholesaler though, is only there to help people in a bad situation that can't sell their house in its as is condition.  So, yes, you can wholesale a property with tenants, I would not recommend it though, it requires a little bit more, and the end owner will need a new lease if I am not mistaken.

 They are both owned by the same person.  Thank You both @Aaron Kinney & @Jim Goebel

@Aaron K. they are both next to each other. One is a Duplex and the other a SFR. They are two separate properties.