All Forum Posts by: Saravanan Saravanan

@Christopher Valerio

Try to find a local private lenders in REIA meet up groups. May be you can do 10% or 20% down; then the investor can fund the rest.

Never give up!

@Account Closed

When some one invests their hard earned money; I want to respect their funds and secure their fair share of the funds.

It is good practice to keep the person with 1st lien holder and provide a mortgage /note.

Sometimes adding folks in LLC might be more costs with attorney and how to handle refinance; profit sharing in long term etc.

In the long run; when you keep it clean and lenders are happy; you would have more funds pouring in.  

Usually for loans above $50,000; 60% to 70%LTV; 12%APR with 2% is standard. About $1000 to $1300 misc loan costs like BPO, inspection...

For loans below $50,000 would be case-by-case basis

It also varies based on the borrower experience in industry; amount of rehab involved; location of the property; how long the expected turn around time would be.

@Alejandro Arciniega

Already there were experts chimed in on these.

In general for medium rehab like this; I prefer to purchase below 70% x ARV minus rehab costs. Preferably close to 65%

@Korey Rowlson

Very nice. Congratulations.

There is a brighton REIA meet up this May 9th; if you have a chance; we can meet there.

@Brendan Kortz

If you are doing wholesaling; have a proper legal contract; written by local attorney. This can help to facilitate the transaction within legal boundaries between buyer and seller. 

The wholesaling can be done through assignment of contract or use a lender for transactional funding; to handle double closing situation.

The transaction between buyer and seller; is done mostly through title companies in Michigan.

Please ensure that as a real estate professional; it is good to maintain respect and credibility with all parties involved. This gives positive image from short term to long term.

@Josh Goodman

Sad to hear the divorce situation and hope things gets better with renewed life.

It is generally hard to fix a broken glass. These future agreements are complex and down the road; things would be even more complicated both sides change of marital status, children etc.  Then it would be more expensive to resolve issues; if appreciation of property value becomes so high and so on. 

Here are my two proposals:

• You can refinance and payoff in full your ex's share.  Record the deed with attorney in this regard properly.  This way there is not legal binding any more with your ex.
• If refinance does not work; then sell the property and move on.

Wishing the very best

@Dexter De Mesa

In Michigan also there are A (Best) to D (Risky) locations.  Hence the tenants would be different at these price points.  You have to know the locations and good local property management company to handle the rentals.

You can also consider partnership with people in Michigan market; with less return; however you have better risk vs return

@Shawn L.

There may be local credit unions who can do HELOC for primary residence; based on LTV.

For investment property; a private lender or hard money lender could be option.  The down side is the higher interest rate compared to banks or credit unions

Networking is a powerful thing to do.  Your networth would soon be the networth of 10 people around you.  The more we rub shoulders of giant; the more we grow over time.  I have learned this over 25 years being in real estate.

Thank @Dan O'Neill in putting this together in Traverse City area.