All Forum Posts by: Ben Millar

Wesley, did you ever resolve this issue?  If so, how?  I may be dealing with something similar.

I used L&M Insurance. They are a member of the local REIA and work very well with investors.

Best,

Ben Millar

You can check out Bridgewell Capital or Lima One.  They are both Hard Money Lenders.  They points and interest are high, but the access to capital is good.  Let me know if you need contact info.

@Terrence Harrington.  I actually forgot something in my last formula (big oops).   I somehow didn't write repair  costs.  The formula should be:

MAO = ARV - Your Profit - Commissions (6%) - Holding Costs (utilities, insurance, taxes, interest) - Repair Costs.

Basically, the MAO formula MA) = .7XARV - Repair costs, assumes that

Your Profit, Sales Costs/Commissions, & Holding Costs (utilities, insurance, taxes, interest) will be equal to 30% of the ARV.

Terrence, where did you get the "Fixed Costs". Per the calculator, it looks like the estimated repairs are $25,000? Is it possible you mixed up the term "Fixed Costs" with "cost to fix". The MAO formula for fix and flips is considered to be: MAO = (70% X ARV) - Repair Costs. You can obviously make this more detailed: MAO = ARV - Your Profit - Commissions (6%) - Holding Costs (utilities, insurance, taxes, interest). You can always dig deeper. But this model is for generally for fix and flips.

The evaluation methodology is different for buy and holds.  I would evaluate based on potential cash flow. 

Thanks Brianna and Wayne,

Shawn,

It's just about 2 k. I have some other options, (IRA or 401k)

Thanks Brianna and Wayne.

Shawn, it's just about 2 k. I've got some other ways to take care of it (401 k or IRA)

I'm currently buying a home and have the cash for the downpayment. The seller is paying 3% of the closing costs. There will still be some closing costs left over for me to pay. Since my limited funds are going towards the downpayment, I'm looking for an alternative way to acquire the funds to pay closing costs. I've heard that some people have used credit cards to secure properties.

I'd like to use my credit card to pay for the closing costs. However, my mortgage broker told me that a card cannot be used to pay for closing costs and that the money has to be "seasoned" in my accounts for 2 monts. He mentioned that this is a rule dictated by Fanie and Freddie.

Does anyone know about this? Is there a way to pay with credit cards that I don't know about?