All Forum Posts by: Michaela Hayes

Michaela Hayes has started 6 posts and replied 14 times.

@Michaela Hayes There's no margin in this deal. The cumulative buy side and sale side transactional costs will be in the ballpark of $60,000. Layer on carrying costs/interest and I don't see where there's profit. The acquisition price needs a $50K haircut for a seasoned investor who can execute quickly. Even more for someone less proficient. Your cost overview doesn't include any contingency or permitting fees either. I'm assuming those figures are baked into the $200K construction budget. See my back of the envelope numbers below:

$275,000 Purchase

$15,000 Acquistion Settlement costs (assuming 1% loan origination fee and transfer tax split)

$22,000 Interest, taxes and Insurance (9 Month Hold)

$200,000 Hard Costs

$512,000 Total Project Cost

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$570,000 Sale Price

S45,000 Settlement Costs

$525,000 Net Sale Proceeds

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Profit $13,000

Hi Stuart, thanks for checking on everything. Apologies but ARV is 670,000

0 Votes

Philadelphia, Pennsylvania

I am reaching out on behalf of a client who is seeking financing for a fix-and-flip project in Philadelphia. While the client has a lower credit score (620), they do have a proven track record, having successfully completed three property flips over the past five years.

Below are the details of the current investment opportunity:

Location: Philadelphia, PA
Purchase Price: $275,000
Rehab Budget: $200,000
After-Repair Value (ARV): $570,000

We are exploring financing options that would ideally cover a significant portion of both the purchase and renovation costs. Given the client's experience and the strength of the deal based on the ARV, we are hopeful that a lending solution can be structured despite the credit profile.

Please let me know if this is a project your team would consider, and what terms might be available. Must be able to close in 2 weeks, have existing appraisal.

0 Votes

Philadelphia, Pennsylvania

Quote from @Erik Estrada:

Hi Michael,

Who will be the PG on this loan? Do they have experience with similar projects?

Im currently the builder for the investor (so yes I have experience)

0 Votes

I am currently under contract on a compelling real estate opportunity that is partially developed and presents strong upside potential. I am seeking serious, qualified lenders who are capable of closing quickly.

Project Overview:

Total Units: 30 Single-Family Residences
Status:
- Permits fully approved
- Foundations poured for all 30 units
- 5 units are 100% complete (interior and exterior)
- 10 units are fully framed with exterior work done – interior completion pending
- 15 units remain to be constructed from the ground up

Financial Summary:

Purchase Price: $12,110,000
Remaining Construction Budget: $4,250,000
After-Repair Value (ARV): $19,100,000

This is a unique opportunity to participate in a project with a significant portion of work already completed and clear path to completion. If you’re a lender ready to move quickly, I’d be happy to share the full project details, including financials, construction timelines, and exit strategy, thanks!

1 Vote

Quote from @Alan Asriants:

If you need someone to double check your investment to make sure you are in fact buying a solid asset, reach out anytime. If you got this deal from local wholesalers you want to be extra careful. Also I see a lot of people undervaluing rehab budgets and overvaluing ARV. its important to do the exact opposite.

Completely agree! We actually did just that. Often times budgets may go up by 10-15% so you need to be able to account for that since the budget is already set. Im always very conservative with the ARV so I know we are spot on with all valuations. Appreciate your guidance and advise!

0 Votes

Philadelphia, Pennsylvania

Quote from @Account Closed:

Quote from @Michaela Hayes:

have a client with a strong investment opportunity and solid real estate experience, but a credit score in the 614–620 range. We’re looking to close within two weeks. Any recommendations for lenders who are flexible on credit but can move quickly would be greatly appreciated. Thank you!

Happy to connect if you're still looking

great! yes still searching, thank you

0 Votes

Philadelphia, Pennsylvania