All Forum Posts by: Michael Kinsella

Like @Chris Seveney mentioned, speaking with HMLs is probably your best starting point.

Network --> Hard Money Lenders --> Filter by state is a reasonable place to start your search.

Awesome to learn a few lessons and make good money in the process!

I'll add some nuance at specific points to the process you described above...

2) Follow through with hard money lender to pay cash for property and renovations with agreed terms

3)Purchase property

4)Renovate

In general, a HML will provide some portion of the purchase price and then 100% of the renovation cost on a reimbursement basis.

For example, a HML may provide "80% of the purchase price and 100% of renovation cost".

What this essentially means is that they provide 80% of the purchase and then you outlay the initial renovation cost (typically done in a draw fashion). 

Let's say your rehab budget is 60k total.

You may choose to split this into 3 equal "draws" of 20k each.

What this means is that in addition to covering 20% of the purchase price, you will also need to outlay the initial 20k for the renovation and "float" that amount throughout the renovation process until you receive reimbursement for the last draw.

5)Sell

6) Pay back hard money lender (amount borrowed plus interest)

Don't forget that you will likely be making monthly interest payments during the term of the loan. The principal amount will be paid back in the event of a sale, but you will still likely be responsible for making interest payments monthly.

Nice!

Another one! Nice.

@Jacob Messer I'd say! Awesome.

You can begin to speak with different lenders. Having options is always a good idea.

Some lenders can offer a pre-approval and a proof of funds based on information that isn't property-specific, i.e. your liquidity.

I like @Sean Ross's answer here; look for deals and start speaking with lenders at the same time.

Very nice.

Another solid deal!

Nice! Plans for another soon?