All Forum Posts by: Duriel Taylor

Hello All, 

I hope all is well. As I pursue the word of real estate, I have become more curious with hard money loans. Unfortunately, I do not understand the numbers. Now I do understand the logic and their purpose, I simply do not understand their calculations. For example, they mention we will give you up to 75% of the ARV. From my understanding, the numbers will be as such; asking price is 55k, ARV is 100k, rehab is 20k, and closing cost is 5k. Now 75% is of 100,000 is 75,000. Here is where the confusion come for me; when they say points, lender fee, etc. I simply want to understand how to budget monthly during the rehab stage while making the payments. Also I would like to use all the approved funds case in point 200k, I would withdraw all the available funds and use enough for the deal(s) and leave enough left to pay the monthly payments in case the rehab(s) take longer than anticipated. Also, what would the numbers look like if I attempt to do multiple flips at once? At your earliest please give me your thought.

PS: all my long winded/typers I welcome as much details and or examples as you can.

Regards,

David Oldenburg Wow great input. You are absolutely right I have no value to them why would I get customized leads and or potential deals. I will reach out them once I have all my ducks in a row (financial resources). I will also explore the option of being a lenders to fellow rehabbers thus building my contacts with vendors, GC, project managers, etc. Enjoy your day and I hope your ok with me reaching out to you for additional advice as I pursue this endeavor. Regards,

David Oldenburg Thank you for your feedback. I look forward to making these decisions every second, not that they will not be redundant and common sense I'm glued to my phone. And unlike many in generation I'm not consuming social media information more so reading and learning. One small advantage I believe I have as a resource is my aunt. She owned a construction business and it was successful. She was able to get government contracts; building bridges, government buildings, etc. However, she is more like show me then I'll help not I will help you as you decide your investment scope. The distressed term is surely over used. I will attempt the wholesalers options, just here in South Florida these wholesalers all share the same leads. Usually once you get the deal 3-7 wholesalers added their fees thus making the deal "unprofitable." If you have any additional tips and or advice please keep them coming. Enjoy your day and take care. Regards,

Jessica Sorensen Thank you for your prompt feedback. I agree with you, i misspoke; this investment scope is not considered "passive income." I will attempt the lending to local rehab bets aka flippers along with learning from a distance. I'm sure the property brothers, flip or flop has "fixed" circumstances that they don't want us the viewers to learn and or see. However, I enjoy the entire process, the calls, emails, scheduling once I do drive into it I believe it will be enjoyable. I bought a duplex a few years ago and it was pretty much turn key however, I still had to involve several vendors to get work done that I did not know how to do. I will admit that I had many sleepless nights but once all completed and rented out, I felt like I just built the Roman Empire (don't laugh LOL). Good luck on your flip and if you can keep me update on the entire process, I would be honored to learn from you and your experiences. Take care and thank you for your time again.

Lygia Bernardes thank you for your prompt feedback. Ideally, I would like to present the three deals as a package thus allowing me to do several flips at the same time. I have no desire to you the funds for anything other than the flips but if the flips take long then projected I would like to have the extra funds to pay the monthly payments. I think even business lines of credit could be an option.

Hello Everyone, 

As I aggressively embark on my journey to success, I found a new passion for fix and flipping. My major obstacle is the funding and or my funding options. I believe I live in one hottest markets when it comes to flipping; South Florida. From foreign buyers to relocated consumers willing to pay more for year round "fun in the sun." While I have a college degree, I did not graduate magna cum laude from Harvard University. Thus, majority of the hard lenders terms are confusing, in addition, I do not have a mentor willing to simplify the terms and or the options in which will be most effective for my particular investing scope. Here's my plan and or thought process in fixing and flipping while using hard lenders funds in conjunction of paying them back the money borrowed with interest. 

1. find three homes to fix and flip. The logic behind this is to ensure that if one or two homes ARV(s) are not as strong then I have one that will still keep me ahead of the game once I pay my debt back to my lender(s).

1.a. I will also like to note that I will like to borrow the funds at the max and with draw the entire amount approved but do not use the entire amount. I will use the funds for the project and save the amount needed to cover the monthly payments. IE withdraw 20, use 6 to purchase the three properties, thus leaving 9 to rehab all three then leaving me with 5 to make the monthly payments until I resale the properties. 

2. Home A,B,C range from 120-150k in price with ARV(s) of 200-210k each.

3. All the work needed to be done is cosmetic; paint, replace light fixtures, carpet, light cabinetry in the kitchens, light yard work.

4. Great neighborhoods, between the work needed and the period of time that it takes to retail to a consumer(s) it will take 2-3 months (60-90 days).

Now between the closing, holding, taxes, agent commission, monthly totaled repayment; how should I approach this situation? Also, my personal financials are strong; I have a local eatery in Miami that has revenue of 300k-400k annually for the last three years. After all bills, salaries, and expenses paid; I net 100k. Keep in mind, I still have personal financial obligations; I have no major debt, great credit score, and less than 10k in personal debt. With all that being said PLEASE EVERYONE that sees this give me your honest and most layman's terms you can to explain my options and or your experiences. 

I greatly appreciate your time and feedback. Take care.

@David Oldenburg

Thank you so much for the feedback. I will consider all that you mentioned. After hours of watching these HGTV shows on flipping i have gained a huge desire to do the same for "distressed" homes. Unfortunately, here in South Florida, either private sellers think their home is a mansion on the beach or realtors wrongfully present numbers thus the deals on paper do not make sense. My long term goal is to flip homes (3-4) per month making me passive income to support my family then giving me lecture time to pursue additional entrepreneur dreams. I understand it will take years to master such a plan but if and when you can provide some pointers I am sure I can knock off a few years off achieving my dream(s). I also have a desire to doing a podcast from day one of how i "made" millions in this industry. The poor man's flip or flop reality show on youtube LOL. At your earliest please give me your first steps/suggests to get started in such an industry. To answer your first question (i am sure you will ask how will i fund my deal(s) initially); I will apply for a business line of credit. I have a business that has a revenue of 500k-700k for the last 3 years. Thus, I will go with a financial institution that provides the best rates of a business line of credit. However, I want to make sure I use the funds accordingly along with effectively make payments back and flipping properties at the same time. At your earliest please give me your feedback. I look forward to hearing from you soon.

Regards, 

@Rob K.

Thank you for your feedback. I will explore this option in the coming days. If you have any lenders that I could contact I would greatly appreciate it as well. Enjoy your evening and take care. 

Regards, 

@Kyle J.

Thank you for all the questions and topics to ask the varies firms. I am sure after all these questions/topics I have for them I will be well prepared and they will think I flipped thousands of properties in the past. If anything else crosses your mind please let me know. Also, if you have any suggested firms I will surely appreciate that as well. I can't express my gratitude enough, THANK YOU again. Take care and enjoy your evening.  

@Rob K. 

My name is Duriel Taylor. I recently saw a post you made in regards to line of credit processing. At your earliest what would be your advice to someone that will like to start in this investment scope with zero assets and or down payment? I do have an investment property that I have a mortgage on and I had it for 5 years now. This duplex has a positive cash flow of $400 per month from the tenants after the overhead (ie water bill, grass cutting, and mortgage). In terms of LOC, what would be your advice on obtaining and using effectively on of these funding options? I look forward to hearing from you soon. Take care.

Regards,