All Forum Posts by: Kevin Romines

I would be looking at it from a tax write off stand point? If you make that much money, you need vehicles that will help reduce your tax bill. Depreciation is a great tool for that and its really all on paper if you set it up correctly. I would talk to your accountant and get their opinions on your tax liability problem and if rental real estate will help that picture?

@Leslie Longworth If you need financing, PM, I can fill you in on some great programs?

Yes, most hard money lenders are looking at the deal and the LTV or LTC and ARV primarily. Most require a certain amount of cash reserves, but they build that into the deal.

You should be just fine considering the cash you have to put into the deal. I have lenders that will go to 90% of purchase and 100% of rehab starting in the 7's with 2-3 points and 6-12 month terms with extensions as needed? PM me and I can share the info. 

@Kerry Boyle You would think that hard money lenders would be okay with seller carry backs, but the vast majority aren't because they want you to have skin in the game. They feel it keeps you on the hook better and in reality it does. 

Now would some of them allow a combination of skin in the game and seller carry back behind their 1st? Yes, some will, some wont? Do you know who, I do, if you don't, you would need to do the research which isn't tough, but time consuming. Are you going to pick up a lot of the hard money lenders that most people wouldn't know are out there? Maybe, but being in the industry, I have an advantage in that I have some tools that others don't?

Will some hard money lender cross collateralize in lieu of skin in the game? Yes, some will and some wont? I say this because common sense would lead you to believe that the lenders would do things in certain ways, but reality is different then what you may think it is here? So with that, you can do your own research and use the info for just your needs, or you can get with someone that knows already and save yourself some time and headaches. 

As far as a seller doing a carry back, yes, that gets negotiated in many deals, especially if there is distress or a large motivation? Its not dramatically different then a subject 2, however there is more risk for the seller as their lien position is secondary, but in the right situation, that can happen?

Personally I prefer to make it as clean as possible. I like the 90% purchase 100% rehab in the 7's that a few of my hard money lenders offer. Its cleaner and easier. I just put the other info. out there so you can see all options. 

Good luck and happy investing!!!

I'm not sure why you would go to all that trouble and risk when you can do a conventional loan at 85% LTV or 15% down = $31,950.00 and have a principal and interest payment of $971.65 plus taxes and insurance. You have full control and can sell it as you wish. You would be with a solid lender with a great reputation?

Alternatively you could buy it hard money at 90% of the purchase on a fix and flip loan with rates in the 7's, hold it for 6 months and then rate and term refinance the loan into a conventional loan based on the appraised value with a max. of 75% LTV which you would easily be within those guidelines. At that point your only into for 10% out of pocket or 21,300.00 plus closing costs, or negotiate for a higher purchase price, the seller to pay your closing costs, therefore less money out of pocket, but well within the value it would appraise at?

I would only do a owner contract and reinstate the loan if you are almost out of time before the foreclosure. Most reinstatement must be completed 11 days prior to the sale date? The reinstatement might be handled by the trustee or Ocwen? There are laws they must follow. If you reinstated it and were added on to title for 6 months and could document all details with contracts and receipts, you could then refinance conventional?

Get with a lender that also understand the investment side of things. Not all lenders have that experience or even want to play in that pond?

Welcome to BP and cheers to your investing career ahead. I'm not real up to speed on the partnership set up, but have done a few in the past. Basically if you and the partner can agree on the set up and what the responsibilities and rewards are for each, put it in writing. Consider taking it to an attorney to write up and then set about the project at hand and you should be fine from there? keep in mind, its a marriage, and if it goes bad, its a divorce, so plan ahead. Not to mention the kids (your houses and liabilities). 

@Chadd Chase I will dive into my lenders guidelines on the construction side things and get you an update?

I would nail down the lending side of things as one of the 1st items you need to tackle. Most other items you have on your list may not matter if the ability to get the loan needed is out of reach. I have 80% purchase and refinance funding, but as far as construction, I would need to dig details out of my lenders? Rates, fees, time frames are all important aspects to a deal as well?

It seems odd to me that there is no specific cap on the number of units? In my area, they cap you based on the parking space requirements. I have a deal now that is 2 mfg. homes but the lots are zone R20, so 20 units per acre. However they require 2 parking spaces per unit and 1 additional parking space once you are over 5 units. So if you had 12 units, you would need a total of 25 off street parking spaces? Based on the design of the complex, you can get there, but that is some of the limiting factors. 

The best advice I can give is pick your path and work that path, own that path, become an expert in that path. 

Then if you want to try other paths, add them as a compliment to what you already know and have working for yourself. The shiny object syndrome can get people at times, they learn from it but it can be costly in terms of time and sometimes money. Choose the path that is the most closely aligned with your goals and just plan to dominate that method and then go from there. 

Good luck in your investing!!!

Sounds like you have a good start with your families background and with all the knowledge here on BP. You will do awesome. Welcome to BP. Happy investing!!!