All Forum Posts by: Pat Jackson

@Mariam Dao find a local bank that will do a construction loan. Mine will finance 75% of project, purchase and rehab. Be sure to get a year of interest only payments. In that year, buy, rehab, rent, and be ready to repeat.

Watch out for the prepayment penalty. Mine is only 1%.

With 50k you could take down a 160-200k project. I’d lead closer to 160, and hold into 10k for things you overlook/a rainy day.

I have two duplexes on one lot under contract. All 1 bed 1 bath. They share a court yard. B+ stuff. Gross rents will be $2200, tenants pay all utilities.

I’ll be all in $140,000. I’d love to brrrr out. I can’t do a conventional loan since it’s two units and the roofs aren’t connected. (The way I understand it).

What are my refinance options. I'd love 30 year amortization, 70% (or better) LTV, and an interest rate south of 5%. Fixed would be nice, but I can deal with a balloon or ARM.

Property is in Missouri, built 1952, zip 64507. What loan products are out there?

My partner and I have a 64 unit under contract in Southwest Missouri. Rents are WAY under market. So far it looks like there’s a shortage of clean rentals in the area. There’s also a shortage of section 8 rentals.

The current owners don’t accept section 8 vouchers. I’ve never had a section 8 tenants in any of my rentals to date (single family to 8 unit). I know section 8 has a stigma, but I don’t really buy it.

Are there any recommendations or stories on incorporating section 8 tenants? The fair market rent rate is well above what the units can rent for open market, so this is a large appeal. It’s a clean, quiet, slightly dated but still very safe complex.

Also, I assume there can’t be two rates for the same unit, an open market and section 8 rate? FYI it’s about $200 less open market than section 8 per door.

@Cheryl James ok. Is it a CFD or deed of trust? Just curious. PM me, I can recommend someone.

@Cheryl James I work in st joe. You may not need an attorney. Post or PM some details, I’ll offer my advice.

A few months ago I heard on a podcast.....when putting a multi-family property under contract, one can have the owner assign the right for the buyer to place an insurance claim while the property is under contract.  This regarded hail.  The thought is if the property hasn't had a hail claim, during the due diligence claim the buyer can have the sellers insurance come out and assess.  If there is hail damage, the new buyer gets the payout, not the seller.  Has anyone ever done this?  Know anything about it?

Problem is I don't remember what podcast I heard this on, or I'd start there.  It wasn't a BP podcast.

I'm wanting to close on a house with cash, and borrow 30k from a friend for the repairs.  Terms:

10% interest rate, payments due at closing. Minimum of $1000 payment.  Obviously if he was loaning for purchase he could go as a first lien position at closing.  What other ways could this be formal/official and put him in position to take back the house if the deal went sideways?  

I have a single family under contract that I want to flip.  Quick numbers:

Purchase Price: 59k

ARV: 120

Rehab: 23-25k

Holding costs, commissions, closing etc (includes hard money payoff): 13k

My hard money lender will do 10%, no points, pay off due at closing (and loan 80% of purchase price).  The kicker is the funds have to be out 6 months or more to make it worth his time.   I asked if I could sell the house in less time, could I reuse the money.  He wants to be involved in the deal, which involves notarized signatures, overnighting documents, etc.  It makes sense he's in front of me, if I get hit by the beer truck he gets the house.

My question is this.  What can I do, create, or otherwise oversee where he's "protected" but not having to run around doing errands.  He values his time, and I want to keep using his funds while they're out but offer him protection.  Thoughts?

My partner and I just offered on a medium sized apartment. We learned verbally the seller is wanting to 1031 into another property. Other than offering to be fluid with his 45 and 180 day limitations (identity in 45 days, close in 180), what else can we include in our offers to make them more appealing? I’ve never done a 1031, but I imagine there has to be something.

Thanks @Bob Norton @Melody E Bergloff.  A question for both of you....who determines what the the property was worth before and after?  Who get's the final say in whether the property doubled in value or not?