All Forum Posts by: Michele B.

First grasshopper you must learn to walk.....(sorry I am in a funny mood). How are you gonna manage this flip from ca to Memphis? How are you gonna find a deal without looking at it (inspecting it?) First find a piece of property run the numbers show them to someone here have more than one person look at them. You will need purchase price, how much to fix it up, what are the holding costs and the closing costs, how much you have down, what are taxes, insurance , the LTV , heat, electric, garbage, yard work, miscellaneous other repairs that might not be in rehab, and then after we help you with those numbers make sure you have a license contractor and someone who is watching over him to make sure he does the correct work. If the numbers work from here then you can get it under contract, then have it appraised and have the contractor do a walk through to make sure there is nothing else that needs to be done. If that all goes well then contact a lender that will do hard money give them the numbers, and ask how much you have to have down.

In other words start at the beginning.  Work the numbers and when you think they are worked work them again. 

Good Luck!

If you have any further questions please tag me. 

I looked at those numbers have you put in everything including management costs, utilities , garbage, sewer, electric , heat, lawn work, maintenance?  If so Like I said on the other post its a great deal. 

IF you can get it with such a small down payment and such a small closing costs. 

If these are real numbers and you are not leaving anything out this is a deal. 

There are blanket loans they are called portfolio loans.  

I will try to answer you as honest as I can.....

What you are talking about is an private investor not Hard Money Loan. 

You have to make sure that the flipper has something of value that he will loose if he defaults that is his down payment.  Its called having skin in the game.  The 100% thing is the same as the 2nd question. 

The amount due for a loan before you get one is called a loan origination fee and that is usually  done by someone with a license (which you do not have) this is so the lender knows that the paperwork is done correctly.  And why the fee?  Here is where it get tricky......Some want a fee just to make money, some take a fee that comes off at closing, and some just want to rip you off. 

IF you have any other questions please feel free to ask.

Just FYI if you loan someone 80% ARV of the money for a fix and flip then you make sure the deal says......you get your original money paid back first and at least 50% of the profit made. most will do 80 % from what I have seen.

Good Luck!

Put the calculator results here and we will look them over. 

For 150 k I would see around a 5.5 % with 5 points and a 7/25 arm with a 80 LTV.

I have seen a lot of them at 12% though 

You said that a SFH would be better because it would make more money right away. Think about this if it is your only property and you can not rent it out for 6 months you are paying all the upkeep and the mortgage. IF you have a multiple unit then you might have one empty at a time. Which risk factor sounds better to you? That is the true question. IF you have 100k you could get something around 400-500 k. Just you need to do the math and make sure it cash flows.

IF you have any questions you can tag me and I will get back to you!

My idea is the same I think. Buy a multi unit that has cash flowing or maybe more than one with the 650 k In two years you can sell those and buy differently with your credit or you could cash out the equity in them and use that for the down payment once you have better credit. 

Good Luck

If you have any questions please feel free to tag me and I will respond. 

You seem to want someone to talk you into this deal.  I will say this.  If it doesn't cash flow then its not a great investment.  Can you use it for your business and rent out a room or two and then you are renting to your business and to the roommates and your rent is then free?  If you can make those numbers work then DO IT!  If you think you could afford to pay a little towards the house payment then I might still try it out.  If your business can not pay rent and leaves you hanging with no income ditch the business and the house.   

Good Luck!