All Forum Posts by: Sean Blomquist

@Adam Allard the reason this is such a popular strategy, is by doing the rehab to the property and increasing the value of it, you have "built" the equity into the property.  You still need to have liquid reserves to do the deal, but won't need the 20-25% down for a turn key rental.  

@Sanjay Gupta the real question should be why do they still have the last 30K if the rehab is complete. Most if not all HML's will release the rehab funds in draws, and if you completed all work they "should" release the last draw to you. Because the money for your rehab is most likely set aside in an escrow account, charging interest on it is not out of the ordinary either.

@Jennifer Appelman It depends on your lender, but typically it is not considered cash.  Yes, it works more like cash than typical bank financing, but there is still a note and mortgage.  You can have your agent mark it as financing but write in that it is Hard Money.  If the listing agent understands what Hard Money is, then there should be no issue getting it accepted.

@Gentry B. my biggest concern would be why they need another 60K to finish the project.  Too many unknowns to give you a good answer, but I would do a lot more digging into it before moving forward.

We wouldn't do a 2nd position loan, we would buy out the first position as well so we are the only one with a lien.  The numbers obviously have to make sense though.

@Marvin Deneffe send me an email directly and I'll send you info and our application.  I'm sure we can work something out.

@Jerome Morelos it depends on what they lend on. Another term you will hear is ARV = After Repaired Value. So some lenders will lend 65-70% LTV of the ARV. Others lend only on the purchase price.

All depends on what type of lender you are using.

I see what you were saying.  I would suggest looking for another realtor if they don't want to submit your offers.

@Stephanie Swanson  I'm confused by your statement "I would like to remove them from this part of the process to reserve their time for other tasks."

Part of their job is to submit offers for you, so what other tasks are you referring to?

@Sharon Sweeny 

Values in N Mpls vary greatly, even from block to block, so make sure you work with a realtor that knows the area.

Shoot me an email directly, and I can refer a great realtor for you.

Thanks @Chris Christianson...

@Gilbert Akpan contact me directly and I can give you some info about the meeting.