All Forum Posts by: Rigo V.

I feel like subconsciously I have been shying away from big projects 75k+ rehabs especially since this would be my first purchase. My reasoning is that I will grow into it.  

Is it a bad idea for such a big project on my first deal? Or do I just need to jump in to overcome the fear? 

@Alexander Felice you're the man! Thanks

@Alexander Felice thanks for replying that clarifies it quite a bit! Is there a limitation on what amount they refi? so for instance 75% of the arv? 

@Ryan Blake yes I do.  I will ask. Thanks!

In the process of negotiating on an REO. They are asking for a 10% EMD which i think is pretty typical. My questions is how does the 10% EMD factor into my HML? Is it a credit to what I would have to bring to the hard money lender to close?

For instance if the deal is $100K, $30K rehab and an arv $160K and the HML funds up to 65% of arv, 75% of the purchase and 100% of the rehab.

The HML would lend me max of $104K. $75K towards purchase $29K towards rehab. I would bring the balance $26K. If I paid $10K as EMD do I only need $16K to close with the HML? (Obviously there are points and stuff that we can exclude for the purpose of this example).

@Jonathan Kincaid @Alexander Flores I appreciate it guys!

@Martin Neal thanks! Thinking of a HML so I'll have to see if they let me. I'll fund the Reno and then when I do the draws they would refund me. This would really speed up my cash out refi process with my banker of choice.

@Martin Neal does this only work If you are purchasing it all cash? 

@Alexander Felice I think this may have been you on the podcast? My apologies if not. 

@Jason D. so how can someone accomplish this? Do I ask the title company to add the Reno? Do I prepay the Reno? What if I am getting a HML?

Sorry for the questions just trying to get it straight in my head.