All Forum Posts by: Odie Ayaga

Awesome to hear @Keenan Fitzpatrick! Love hearing a genuine rags to riches real estate story!

Hard money won't be an option since you're intent is to live in the property

Have you been in contact with the first lien holder?

I would do some sort of JV agreement instead. Anything more than 2 sounds like trouble to me for a first real estate venture. The credit thing shouldn't be an issue and with a hard money lender the combined skills of the group can be of use, but I would definitely think twice and speak to an attorney before having a 4-5 member LLC.

How did they address the discrepancy between the 13.75% and 11%? Are you sure that doesn't include the points (although that would be a weird way to represent it)? Did you get an itemized breakdown of the 8K in closing costs vs the 10k in closing costs? I ask only because sometimes I've had borrowers misunderstand the description the explanation of various items which can happen in these transactions. How much time is left before closing?

Yes generally a lender isn't going to take a 2nd position or allow one on the property. And no I don't believe there's a such thing as "co-1st liens". By definition one has to be in front of the other.

Do you have enough cash flow to manage interest only payments if you had to spend the entire 20k on closing costs?

What are you finding difficulty finding an HML over? Is there an issue they have with you or an issue in your search?

Prior experience isn't generally required, but could help you to get better loan terms. Down payments range from 30-0%. Liquidity I always tell people they probably need to expect to have 30K cash minimum even at 0% down to cover closing costs, first draw etc.

Considering your timeline it doesn't look like a hard money lender is a fit since you need a longer loan than most will do.