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All Forum Posts by: Michael P.

Michael P. has started 50 posts and replied 123 times.

Post: Hard Money ONLY used WHY? Please Explain

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

Does a cap rate include purchase price + closing cost?  Or just PP? 

Same question for Cash on Cash.

Post: Hard Money ONLY used WHY? Please Explain

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

@Jason Hirko
You are right Jason, your facts make sense.

Is it possible the rep said 75 LTV, or 75% of ARV...

Post: Hard Money ONLY used WHY? Please Explain

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

@ zachery 

@Zachery Buffin
Hi Zach, I totally missed that, yes of course for As Is properties, no lights, no water, you cannot get conventional financing, but why else would someone want to get into this loan?  You still have to come up with a down payment.  The ONLY reason is conventional will not allow to go into something without inspection of electric and water.

Post: Hard Money ONLY used WHY? Please Explain

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

I am currently running the numbers to try truly grasp, why hard money over conventional loan.
Besides credit and things like that, why Hard Money?

Most HM will lend up to 75% of Purchase price, or is it 75% of ARV? Because if its purchase price, that makes no sense.

Please someone make sense of this for me.

Example:
Purchase price 75k
ARV 105k

Origination at 1% min, 750.
Interest example 9%, 562.50 / Annual 6750
Plus I have to come up with a down payment?

How and why is this a good deal.

Post: Is This How You Buy ??

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

My private residence is already FHA.

This above structure is a buy and hold, I can only have 1 FHA right?  So no matter what I will still need to do 20 percent, so no real point of doing hard money if I had to do 20 percent anyway.

Post: Is This How You Buy ??

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

So I heard on a podcast that the person buys the prop with hard money, then two months after a little rehab he finances into a fannie loan, 3.5 down or whatever it is now, but now the usual 20!  Is this a regular method?

Post: Cash on Cash / Do you Include Closing Cost?

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16

Property cost 55k, 20 down is 11k. plus 5k closing. total 16k at table lets say.  For cash on cost. Lets say estimate rent profit is 350x12 / 16k or 11k?

Post: LLC for each rental or all under 1?

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16
I am about to form a partnership with my partner. Should we have an llc for each property or can we have a single llc for many properties? Also who to go to for a partnership agreement?

Post: Partner Provides All Money and I Do All Work

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16
Should a contract be written up? Should both names be on title? How are you doing it?

Post: How many miles do you use for a comp?

Michael P.Posted
  • Marlton, NJ
  • Posts 129
  • Votes 16
What distance from your potential purchase are you using for a comp to determine ARV ? .5 .15 1 mile, how much?
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