All Forum Posts by: Raj Kissoon

Hi 

@Ryan Blake

Here is what I'm approved for with HML. I'm approved for up to $300k. 10% interest with 3 points. They will fund 100% of the purchase and repair up to 65% of the appraised ARV. 9 month term.

I ran the calculation with a potential real world deal. Would you mind checking my math?

ARV = $420k

Purchase Price = $225k

Rehab = $40k

HM Loan = $265k (100% of purchase and repair)

Skin in the Game = $8000 ($273k (65% of ARV) - $265k)

Fees = $1700

Points (3) = $7,950 

Cash to Close for the Loan = $9650

Monthly Interest Only Payment (10%) = ~$2200

Thanks for any help in advance! 

@Ryan Blake thanks for the response! I’ll let you know if I have anymore questions 

Hi Everyone,

New to investing, but have been studying and speaking with lenders. I am trying to fully grasp the HML calculation. Assuming I am approved for 65% of the ARV. In speaking with an HML this is basically what I was told:

Can someone advise me if I'm doing this correctly?  If so, would the following be correct?  That my "skin the game" would be $0?  Obviously a deal like that would be hard to come by, but for the purpose of this exercise let's assume. 

Any help would be greatly appreciated!  

@Nicole Hoss thanks!  I'm just starting to learn that lesson and am looking well outside NY.  While I understand my first property should be within arms reach, it looks like if I want to get start with something small another state is the way to go.  

@Harjeet Bhatti I don't mind utilizing a certain amount and covering the rest out of pocket.  

For FHA, don't I have to live in the house for it to apply? Also, I would have to factor PMI? Correct?

Hypothetically, if either of those work, what would be the strategy for the next property.

Thanks for the response

Hi Everyone,

I am new to the game, but have been studying up on everything real estate for a few months now. I need advice on how to fund my first project. Here's the situation, there is a multifamily on the market for $550k (I know I should start extremely small, but living in NY does not make that easy - for now let's use this as the example), which conservatively speaking can bring in 8% ROI. The property is basically turnkey and needs little to no rehab.

My primary home is valued at $500k. We have $390k left on the balance. Leaving $110k in equity. We also have a healthy personal savings, 401Ks, etc., but I'd rather leave those alone. The question is, should I use a HELOC/HEL, Hard Money loan, FHA loan, etc.? Subsequently, how would I go about getting another property after that? I'm having trouble applying the BRRRR strategy because there is no increase in value to cash-out refinance.

Forgive me for any lack of knowledge - that's why I'm here!