All Forum Posts by: Account Closed

Joe Villenueve is right.  On fix and flip scenarios, debt ratio of the borrower doesn't come into play.  The  job of the rehabber is to buy it right, rehab it to be comparable with the best properties in the neighborhood and then price it correctly to sell within 90 days from purchase.  The original onus is on the property and structure of the deal, not the debt of the borrower.

Keep your money and use other people's. There are several lenders that will provide funding for flips at 65 and 70% of ARV with little money out of pocket. US Commercial is just one. If your partner has experience in flips, the money is out there.

I look forward to working with you in NC.  Nick Patterson is right.  Have a plan and work the plan, the money is the easy part.  

To weigh in again, Maryland laws are VERY tenant centered.  I don't think getting fined three times the monthly rent amount is worth taking the money.  Talk to an attorney before you do anything.

I would get advice from a RE attorney and ask if it can be held in escrow.  I think that may avoid the tax implications and satisfy a judge if there was a question of whether it was a deposit or not.

Just thinking outside the box a little.

Welcome to Real Estate Investing.

Feel free to reach out if you have any financing questions. I agree with James' answer above. While the LLC is a great idea as you go forward, especially as you buy and hold and your liability grows, traditional banks won't speak to it.

Again, feel free to reach out for financing questions.  I'll provide you with whatever knowledge and expertise I can.

Tom

You're at 85% ltv.  

You should stick with the strategy that's been working and get a loan with stated income. There are plenty out there that will do apartments based on cash flow vs your income including ours at US Commercial. 

The rates are a little higher than what you may (emphasis on may) get from your local bank but you'll close with less hassle without having to redo your taxes for the last few years, paying extra tax and penalties. I'm no accountant,  but I can smell an audit waiting to happen.  

30% down. 30 year amortizations and rates in the 8's. These are common terms, common amortizations and rates. Some are better than others. 

Go stated. 

I just want to emphasize that I'm not trying to violate forum rules with a solicitation. Stated is the solution to your issue. 

Lee

Give me a call to discuss. Sounds like something we can do on a 3,5 or 8 year term. This is not hard money. Rates below 9 with a 30 year amortization

Tom

301-751-1962

[email protected]

To use the appraised value, 12 months seasoning.  You may be able to use the acquisition plus improvements at an aggressive local bank.

Hey Mike,

Welcome to Bigger Pockets.

There aren't any decent REIA's that I've seen in the Annapolis area. There's a really good one down here in Southern Maryland. The BWI MeetUp in Arbutus is about the best in the Washington Baltimore area.

Question and a statement:

How did you get chosen to make things more efficient when you haven't done this before and fire the HVAC guy now.  If he's cheaper, but dragging you out for weeks, he's really not cheaper.

I have some great construction guys for you.  Colleague request me.

Good luck

Tom