All Forum Posts by: Mark Milan

Ginger I agree with Chris and Jeff. I don't generally LEND my money as I use it for my own deals, but I DO partner with Private Lenders. I always secure their investment with a 1st Position Mortgage, unless there is some special situation that requires something subordinate to 1st (rare for me) and then ONLY with full disclosure to the lender what the circumstances and risks are. I'll add that if the developer is using Hard Money, his tolerance for risk is probably pretty high as HM lenders usually take a substantial part of the profits in fees and high % rates. Cant be positive with only the info provided but I see a lot of red flags here too... you could be getting taken.

4 bed 2 bath SFH in relatively good condition. Quality Neighborhood. Low inventory of 3 and 4 BR homes in area. Non flood zone.

$250k - $270k ARV.

$135k Purchase price.

$40k - $45k repairs.

3 - 4 month turn.

Looking for (cash) funding partner for $135k purchase price secured by 1st position mortgage. My contractor and I will cover $45k in improvements. 33% split of profits.

Can provide all supporting analysis and SOLD COMPS. Property cannot be financed because kitchen is missing.

Please call my cell 732-241-4949.

@Paul Jamgotch . give me a couple days to get back to you. I am swamped. If you don't hear back by Friday ping me to remind me.

Marc-

Wayne is mostly right. I have done deals this bad under water before but the chances of making something out of it are slim. It is certainly not a typical deal by any stretch.

However, if you can't even get the details on the mortgage and expenses from the owner, there is definitely nothing to do here but pursue a short sale.

so whats the arv?

Hi Marc. Could possibly do something with this. Tell me more. Is the loan Fixed Rate or adjustable? Number of years left on the loan? What is the monthly principal and interest payment? What are the annual taxes and insurance? What other monthly costs are paid by landlord?

I am exploring the possibility of working with private lenders for commercial size (5 - 100 unit) multi-unit residential / mixed use (high % residential) properties. Deals I negotiate are on properties that are performing well to begin with but could use some degree of turn around and/or value add attention. Typical target hold timelines are 1 - 5 years depending upon the property, the actions needed, the returns, and max term lenders will allow. Have any of you gotten private funding for these types of deals? If so, I would like to find out what types of terms you have gotten, including LTV ratio, deal size you have gotten financed, amortization term, etc. Any other experience, advice, or contacts would be appreciated.

I am interested in finding private lenders for commercial size (5 - 100 unit) multi-unit residential / mixed use (high % residential) properties. Deals I negotiate are on properties that are performing well to begin with but could use some degree of turn around and/or value add attention. Typical target hold timelines are 1 - 5 years depending upon the property, the actions needed and the returns. If you are a private lender or interested in becoming one, I would like to find out what your terms are, including your highest acceptable LTV ratio, deal size you can finance, amortization term, etc.

@Steve A. Thanks for the Inquiry. Unfortunately she is not interested in holding paper. Financing is not an issue for me, however I am trying to keep most available funds liquid as a have a much larger deal I'm working on. (I may need to take a larger equity stake in it than I originally intended.) Send me a PM and lets discuss the possibilities of a JV. Let me know what you bring to the table in terms of: funds, experience, knowledge of that market, proximity to property, and willingness to manage/maintain. Maybe we can find some trade offs that work in both our favor!

@Mark S. Yes sir mark, you can do it however your lender (and you) wish. I just put together a for instance based upon rough lending requirements. If you can do a higher LTV, I applaud - even recommend it - as your cash on cash ROI will go higher. W 20% down and 5% occupancy, the ROI is around 46%. I would do deals like that every day of the week.

In fact if you have a lender who will do higher LTV on properties like this, please PM me!