All Forum Posts by: Michael Kinsella

Adam,

Congrats on managing the rehab effectively! It looks like this was a highly profitable deal.

How did you finance it?

Best,

Michael

Hi Sam,

The most common use I've seen for submitting comps to a HML is rebutting the appraised value.

As others have mentioned, the lender will make their ultimate determination as to the as-is, and/or in case of renovation, after-repair value of the subject property. Lenders will vary in their reliance on 3rd party appraisals.

However, appraisers aren't perfect. As such, if you believe the value of the property is different than what the appraiser concluded, then it may be helpful to include comparable properties that better indicate the value of the subject.

Best,

Michael

Congrats on a successful fix & flip!

A 90% cash-out refinance LTV doesn't exist, as others have pointed out.

Top-of-market LTVs for cash-out refinances (and other financing types more generally) are 80%. Even that would be unusually aggressive right now.

Hi Eber,

Below are some ways to curate a list of prospective HMLs;

1) BiggerPockets --> Network --> Hard Money Lenders --> Filter by state (Florida)

2) Local REIA/meetup events, where you can get referrals from local investors and network with HML reps.

3) Google "Hard money lenders central Florida" and explore the results.

Note that many hard money lenders are now looking closely at other underwriting criteria like FICO score and liquidity as opposed to just the value of the collateral (the property), so you may need to speak with a fair number to find what you're looking for.

Best,

Michael

I agree with @Jay Hinrichs's suggestion above. Given the special use nature of the property, community banks are probably your best bet.

Hi John,

You'll generally see loan minimums from HMLs ranging from 50K-100K.

With that said, below are some ways to generate a list of prospective HMLs for your client;

1) BiggerPockets --> Network --> Hard Money Lenders --> Filter by state (Indiana)

2) Local REIA/meetup events, where you can get referrals from local investors and network with HML reps.

3) Google "Hard money lenders Indianapolis, IN" and explore the results.

Best,

Michael

It's highly unlikely.

As @Bob S. mentioned above, most all lenders are going to want you to have skin in the game.

Additionally, even in the event you were to figure out something like a 1st position HML and 2nd position seller financing, that may violate the 1st lenders loan terms. Many senior or 1st position lenders want to be the "1st and only" lien on the property.

If you want 100%, your best bet is probably a local, individual private money lender that you have developed a relationship with, and even then it's unlikely.

Congrats!

Was this your first buy and hold, or are you adding to your existing portfolio?

Congrats on adding to your portfolio!