All Forum Posts by: Joey Sullivan

Be sure to ask all of these questions so you can compare apples-to-apples when shopping around for a hard money loan:

- What % of the ARV is leant out (e.g. 75% of ARV for rentals, 70% for flips)

- What is the interest rate?

- What are ALL the fees? This includes things like origination points, fixed fees, draw fees (from repair escrow), required 3rd party fees that other hard money lenders would not require (e.g. certified appraisal, legal fees).

- When are the points & fees paid? (e.g. at closing or when you refinance / sell the house?)

- How fast can the deal be funded and close?

- Is there a minimum loan term? If so, what is the pre-payment penalty?

- Is there a maximum loan term? If so, what happens if more time is needed?

- Does the loan require a repair escrow? If so, is it 100% of the repairs, or only part?

- Does interest accrue on money held in the repair escrow?

- What is your draw process and how quickly will I receive funds from the repair escrow?

- When are interest payments due? Are property tax escrow payments or anything else paid along with it?

- Does one have to use a specific conventional lender, or can anyone be used (for buy-and-hold properties)?

- What properties do you not lend on?

- What stipulations does your loan program have that other hard money lenders do not? (e.g. Contractor gets the materials funds up front, but the final draw payment is not refunded until you refinance; must have only 1 contractor bid and do a mechanics lien at closing [if you have more than one contractor it won't work]; MLS deals work, but you cannot have an assignment of contract; etc)

- What other value-added services do you provide that other hard money lenders do not?

Try Susan Reiss, CPA, MAcy, MBA with Reiss & Jung CPA, PC

She lives in Round Rock. 

@Zachary Barton I'll be at this Thursday real estate investor event, if you'd like to come - https://www.meetup.com/texas-real-estate-Investment-Education-Training-Networking/events/236706060/

Susan Reiss with Reiss Jung CPA out of Round Rock, TX

Check out meetup.com and search for 'real estate investing'.  You'll find groups that you can network in. 

Thanks for sharing! 

Join Lifestyles Unlimited and learn how to invest in MF apartment complexes.

• Jeremy Lewis with AMP Lending 
• Donna Fox with Barton Creek Lending Group
• Dave Beach with Cambria Mortgage
• Kimberly Sporich with KBS Lending, Inc.
• John Schutze with Supreme Lending 

Rohit, I'd say generally to focus on the peripheral sides of Austin - East or South. You should also focus on Round Rock, Georgetown, Kyle & Buda. But prices have been going up all over the place and the market rents are not keeping up with the higher mortgages, so these areas might be better suited for flips before too long.

One of our flipper clients has too many deals on his plate, so he is wanting to wholesale it and we are promoting this deal for him. We have an appraisal completed on this file, but it is based on the investor adding an addition to the property.

Here is the dropbox link for this deal - https://www.dropbox.com/sh/v7357n29wsmg27r/AAAXWPrOBbitrZLfgPnCgcWwa?dl=0

Here are the details:

Address - 4904 Tannehill Ln, Austin, TX 78723

Purchase price – $202,000

Est Rehab – $62,501 (per the investor who was going to initially do the project – please do your own due diligence)

Est ARV – $360,000 – verified by our certified appraiser

Bed/Bath/Garage – 3/2/1 after a 616 sq ft master bedroom, bath & living area addition

Year built - 1964

Sq ft – 884 currently; 1535 with an addition

Annual property tax – $3,949

Annual HOA – $0.00

Subdivision - Springdale Hills

Closing Date – 01/11/2017

Are there pictures– see dropbox link

Rehab details – see dropbox link

A viewing of the property will be at 12:00 on Thursday 01/05/2017 - please call or text me if you are interested in viewing the property. Our general contractor will also be there to get an additional bid.