All Forum Posts by: Michael Kinsella

That's fast!

Nice - what was the time from purchase to sale?

Nice that it was still profitable.

What was the timeline from purchase to sale?

Awesome. Solid profit margin and awesome you got to work with your dad.

Best wishes on the next one.

Solid profit margin.

How did you finance the deal?

Sounds like this one had some more challenges, but you were able to make out well in the end. 

Awesome. Congrats on a successful flip.

It depends on what you value most.

Borrowers who want the lowest cost of capital typically pursue local banking relationships.

Borrowers who want more speed and a less stringent process typically pursue hard money lenders or individual private money lenders.

Adriel,

Based on your post, it seems financing cost is your biggest concern.

You mentioned you haven't spoken with local banks, so that may be something to explore.

Generally, banks offer cheaper financing than individual private money or hard money lenders.

Broadly speaking, you're unlikely to find cheaper financing than what you've been getting, so another way of looking at it may be to just pursue deals which offer a bigger profit margin.

Hi Madelyn,

It's a good question, and how the financing is structured for fix & flips & BRRRRs can be a bit confusing at first glance.

Let's use a fix and flip loan through a hard money lender as an example.

Typically, the hard money lender will finance both the purchase and renovation, however the purchase funds will be disbursed at closing (to actually buy the property) and the renovation funds are typically disbursed on a reimbursement basis.

What this means is that you typically need to front the first portion of the renovation costs, then you request an inspection, an inspector comes out, looks at the work that was done, sends a report back to the lender, and the lender disburses the funds.

So, the financing is typically structured as one loan, however the timing of the disbursement of funds differs.

Hope this helps.