All Forum Posts by: Michael J.

Niche Investments LLC

Niche Real Estate Holdings LLC

Based on your description, it seems that you are looking for a financial partner (lender) rather than a business partner. You are seeking someone who can provide financing for the purchase and renovation of the property? Unless I'm misunderstanding and when you go to refinance it you are buying out the business partner so that you can house hack it?

Your estimated numbers don't scream deal to me.  You are probably way low on your reno budget based on it being 5 beds its over 2500 sq feet most likely.  On a light rehab that would be $100k.  full gut would be closer to $200-$250k rehab.   

This is also a huge project for a brand new investor, I doubt you will have an easy time finding someone to lend you the funds to tackle this as a first deal especially with these numbers.   I'd be happy to chat more in depth if you want to reach out. 

The amount of MIP varies based on the type of loan and the down payment amount.

For a standard FHA loan with a down payment of less than 10%, the MIP is usually 1.75% of the loan amount upfront and 0.85% annually. For a down payment of 10% or more, the MIP is usually 0.45% upfront and 0.80% annually.

For a 203k loan, the MIP is usually 1.00% upfront and 0.50% annually.

You would form your business as a multi member LLC with each member having 50% of the business. You would also want an operating agreement that breaks down the rights and responsibilities of each member. I would set up a Parent company LLC and then under that open and LLC that holds your properties. But this is something you would want to discuss with your CPA. I use Prime Corporate Services for setting up my business LLCs for real estate investing.

I like David Gentry with Gentrys Electrical

Bill Harlow with Harlow Plumbing Service

Scott Shelton with B&G Painting for painting and drywall

Brent King Law- reach out to Zach Thomas.  He specializes in working with investors.

can you post the details of what you are needing?

I would work on getting the rest of the houses under contract and seeing if the end buyer wants those as well.  Somebody will eventually do it if you don't.

There is a news story out about Offerpad that I would be showing your clients about how they are being fined by the FTC for taking advantage of sellers.  Also, Opendoor is going to want to do a video walkthrough of the property and then send someone out to walk around the property before sending an offer.

What I would do is take really good pics of everything and also a really detailed video that you can send out to buyers.  That way you are minimizing the foot traffic but also able to present it to buyers who wont try and take advantage of your sellers.

bump