All Forum Posts by: Stephen Turner
Stephen Turner has started 8 posts and replied 29 times.
Post: Whole Sale Investing- Purchase and Sales Agreements/Assignments
- Clayton, NC
- Posts 29
- Votes 3
Hi BP Investors NC:
I've been a BP member for many months but I had to put on hold my entree into RE Investing to get some things taken care of. I'm now ready and looking to start in the wholesale area of investing here in NC. Does anyone have a Purchase and Sales Agreement that has worked well when it comes to a wholesale transaction? How about an Assignment Contracts for my end buyers in NC?
If not, is there a good resource I can go to to obtain these documents?
Also can anyone recommend a Title company that is "friendly" to investors who do wholesale deals either through double closings or assignments in the Triangle?
Thanks
Steve T
Post: Anyone have loan experience with Do Hard Money
- Clayton, NC
- Posts 29
- Votes 3
Thanks Paula
I certainly appreciate the positive insight with regards to DHM.
I have looked into them myself but was a little apprehensive.
I’m here in the Raleigh dorm area of North Carolina and I would welcome the opportunity to partner with you to see firsthand how they operate.
I’m here in the Raleigh Durham area of North Carolina and I would welcome the opportunity to partner with you to see firsthand how they operate.
What’s the best way to contact you
Post: Exit Strategies in my Flip does not Happen within terms of HM loa
- Clayton, NC
- Posts 29
- Votes 3
Originally posted by @Cara Lonsdale:
It's your house if you have purchased it and have taken a hard money loan on it. The HML doesn't have anything to do with your ownership.
If, after 12 months, you haven't flipped the property, you may want to rethink your strategy as a flipper! lol. That's a long time to hold a property as the interest on the hard money alone will be a hefty expense that racks up the longer you hold the property. The whole point to a flip is quick turnaround.
NOW, let's say you decide after the rehab is done that you would rather HOLD the property as a rental. In that case, you can contact a traditional lender who offers conventional financing and refinance it. By refinancing it, you will pay off the HML, and replace it with a better rate and term loan for the long term.
Thanks @Cara Lonsdale, yes the 12 month time frame would be extreme and require a total review of my business model... agreed . I'm just making sure I have all different options thoroughly understood to prevent falling into an expensive decision as a default
Post: Exit Strategies in my Flip does not Happen within terms of HM loa
- Clayton, NC
- Posts 29
- Votes 3
Originally posted by @Stephen Turner:
Originally posted by @Caleb Heimsoth:
Your other exit strategy is to refinance to a much cheaper loan, meaning a conventional loan. Without specific numbers there's so may to know if that'd work, but it can work when done properly. That method is called the BRRR strategy on here.
For example, but something with an ARV of 100k for 50k. Spend 25k on rehab and holding costs and then refinance out your 75k while maintaining 25k equity. Then use the 75k to pay off hard money loan
@Caleb Heimsoth: Thanks Caleb...Just so I'm clear, if the HardMoney Lender holds the first lien position, then I can then refinance the loan as I will be listed as the owner on the Deed of Trust? Is that right?
Post: Exit Strategies in my Flip does not Happen within terms of HM loa
- Clayton, NC
- Posts 29
- Votes 3
Originally posted by @Caleb Heimsoth:
Your other exit strategy is to refinance to a much cheaper loan, meaning a conventional loan. Without specific numbers there's so may to know if that'd work, but it can work when done properly. That method is called the BRRR strategy on here.
For example, but something with an ARV of 100k for 50k. Spend 25k on rehab and holding costs and then refinance out your 75k while maintaining 25k equity. Then use the 75k to pay off hard money loan
Post: Exit Strategies in my Flip does not Happen within terms of HM loa
- Clayton, NC
- Posts 29
- Votes 3
Hi:
Ok, so I'm about to embark upon making my first investment purchase but I have a nagging question in the back of my mind that seems to be bugging me all the time. If I make a solid purchase of a SF property, with solid numbers ( purchase price, rehab costs, ARV, etc) and my goal is to use hard money or private money to purchase and rehab the property and then flip it, what are exit strategy options if it does not flip within the terms of the HM/PM loan?
Another words, if I take out a HM loan for 12 months, interest only say and I do not flip it as anticipated, are there exit strategies that BP members can suggest to pay off the HM/PM loan in full....
Just trying to anticipate all the issues and be prepared accordingly.
Thanks BP
Post: Anyone have any experience with HM Lender-Patch of Land
- Clayton, NC
- Posts 29
- Votes 3
Shawn Ward Thanks for the info on 5Arch. I will check them out..any FICO minimum requirements?
Post: Anyone have any experience with HM Lender-Patch of Land
- Clayton, NC
- Posts 29
- Votes 3
Originally posted by @Shawn Ward:
@Stephen Turner I've actually closed deals with Civic and Patch.
Patch: Better terms, can be hard to work with (they've grown too fast and have a lot of junior people, but they do close)
Civic: Not as good as terms but very easy to work with. They are a machine.
But, recently I've started working with 5Arch. Easy to work with like Civic and even better terms than Patch.
Onwards!
sjw
Post: Anyone have any experience with HM Lender-Patch of Land
- Clayton, NC
- Posts 29
- Votes 3
@Shawn Ward Thanks for the info on 5Arch. I will check them out..any FICO minimum requirements?
Post: Anyone have any experience with HM Lender-Patch of Land
- Clayton, NC
- Posts 29
- Votes 3
Thanks BP, good advice from experienced investors is priceless. I will look elsewhere. I've been looking at Civic and they seem to have very friendly underwriting requirements, somewhere between 8-10% is the interest charge rate it seems. Stated income, so I may pursue Civic at this point.
Any experience with Civic that may be useful?
Thanks everyone.