All Forum Posts by: Account Closed

There are a multitude of lenders out there that would be able to assist with your upcoming projects. A few things to keep in mind when doing your research on lenders:

• Do they lend in your state, and are the local or national? When dealing with local lenders, it might be easier for the lender to get comfortable with "outside-of-the-credit-box" situations given their intimate knowledge of the neighborhoods in your town, but when working with a national lender they tend to move faster and have more streamlined processes since they're lending tens or hundreds of millions a month across the country and specialize in real estate investment lending.
• What is your level of experience? Most of the big lenders out there will determine the terms they can offer you based on the number of completed projects you've exited, and some will give credit for buy and hold, others do not. Find several lenders that lend in your state and then determine which will give you the best rates for your property. 
• Size of the loan - most lenders have minimum loan amounts to ensure the transaction is mutually beneficial. I'm unsure what price point you're targeting, but if the property is under $75,000 then you're limited to a few national lenders, if you're taking the national route. 
• Timeline - are you looking for a 12m term, a 9m term or a 3 year term? Several lenders offer 12m terms as the standard timeline, but there are others that will offer you the 9m term with a 3m extension at a cost. Be mindful of the work you're putting into the property and the local permitting timelines for such, as well as whether you'll need an architect to draw up your plans for submission, which can add to the timeline. I recommend a 12m term at a minimum until you're more comfortable with the ins and outs of construction.
• LTVs - for someone who has not completed a lot of flips, you will likely be capped at 65-70% of ARV LTV, which includes the rehab holdback. Be prepared to come in with 20% down and closing costs (vary by state and region, but it's wise to allocate $4-10k depending on the size of your loan to account for lender points), and be pleasantly surprised if you don't need that much. Expectations are everything.

Feel free to message me for more insights and if you're in need of assistance finding a lender for your deal, I'd love to help. Happy investing!

Hi all - I'm looking for a referral for a San Francisco-based real estate tax advisor. Who has someone that they have enjoyed working with in the past? I'm a small operation and have my first house underway, and am unsure where to start when it comes to taxes. 

If you're planning on using financing in order to take the leap (which I highly recommend in order to keep your cash-on-hand as high as possible when finding new opportunities and to deal with unexpected rehab expenses) then you should have enough to complete 3-4 flips per year.

• 100k in liquidty
• $55,000 average purchase price
• 20% down given low experience with flips = $11,000 per property down payment, + $5,000 closing costs and $8,000 to start the rehab before the your first draw would put you at about $25,000 needed upfront per property 
•  - assume a $44,000 loan and a $30,000 rehab budget = ~$75,000 total loan, at 11% interest + utilities, holding costs and resale costs, you should be able to buy one property every 3-4 months to spread the risk so you're not all in on 3 properties in the first couple of months

Hi George - There are a lot of options out there for financing these days that you would be able to utilize in this situation without the seasoning. If you're looking for a rate that's along the conventional loan rate of circa 4-5%, then yes - you're likely to be stonewalled by local and regional banks. However, if the numbers work for you around the 7-9% rate there are dozens of lenders that don't require the seasoning to refinance. One I've been in touch with recently was Temple View Capital, who lends at 75% AIV for cash out with no seasoning, but the rates are definitely those typical of a non-conventional lender. 

Getting licensed is a great first step to learning the market, how to find properties, how to value properties, etc - that is likely going to be a worthwhile investment of time and money in the long run, especially if you're looking to take this on full time. There's no harm in adding a license to your name, and it also prevents situations where you might find yourself in some trouble. 

Hearing how other people set goals not only around real estate but in life in general allows me to better align myself with the mindset of people that are smarter than myself. There is enough opportunity in the world of real estate that the pie seems to be never ending - so in my mind, sharing goals and methods of accomplishing those goals allows other people to benefit from real estate to increase their financial freedom and achieve long term wealth. 

Your side hustle can be just about anything you can fit into your schedule that fits your interests. Are you a surfer? Offer surfing lessons on weekends. In marketing? Advertise and find a few clients that you can handle their newsletter or social media accounts for a fee. Working in retail? What about Lyft when you're not working? There's no limitations on your creativity when it comes to making money on the side.

Getting in touch with several local realtors and seeing if they have a need for someone like you around the office or in the field is a good place to start.

Do you have a website or any references? Your profile is extremely minimal. 

Hi team - 

I'm going into contract on my first property in Cincinnati Ohio, and wanted to see who you use to finance your deals out there. I work for LendingHome, which means I cannot get a loan from LH, and am in the process of finding another lender. There's a worst-case-scenario financing lined up at 15%/5pts, which is almost insulting, but they make it really easy to work with them. I'm looking at Lima One, LendingOne , etc - what do the locals use? 

$80k purchase
$65k rehab
$210 conservative ARV
First flip
750+ Fico
$25k in reserves

Any private lenders out there that want to know more, please message me. 

You definitely need to look more into the terms of an FHA loan before moving on this. Don't get yourself into something that a) won't make money given you're only renting out half of the building and 2) will get you foreclosed on for breaching the note you signed.