All Forum Posts by: Ryan Stuckey

Indeed, close with cash and then follow up within 3 months with "Delayed Purchase" financing to pull cash back out of the property. This can include a rehab component for flip/value-add scenarios.

What do you expect the ARV to be on this, Uriel?

congrats and well-done! way to persevere through some challenges...

 A piecemeal refi like that won't happen, but with a hard money fix and flip loan, there is a rehab funding component that will allow you to get reimbursed along the way (i.e. spend a max 1/3 of rehab out of pocket before getting a draw).

Hard money loans below 100k are certainly possible.

If you want to scale up to multiple properties, you will need to get a business entity formed to own the properties, for several reasons. From a financing standpoint, non-conventional financing can be used that won't need to validate your personal income/debt/employment info. The loan would report to the business entity and not add to your personal debt (and worsen DTI ratio). These loans are based on asset value, e.g. value of the property and/or cash flow of the property and can thus scale repeatedly.

I'd get a purchase and rehab loan to fund 80-90% of the purchase (depending on credit and experience) and 100% of the rehab funded in draws post-expenditure. One year interest-only, exit on sale or refinance to long-term rental loan in 6 months or so.

Long-term rental loans start at par rate, i.e. no points to buy-down the rate. To me, you paid a decent amount of points (origination fee) but did not get the corresponding rate reduction I would expect. You might want to ask what the rate would be with 0 points.