All Forum Posts by: Tsipora Smith

Quote from @Daniel Perez:

@Tsipora Smith

Thank you for the advice I am in Houston

Very cool Daniel, I'm in Dallas county. Houston is definitely a great place to be investing right now. Good luck and congrats on your journey.  

Sounds like a straightforward wholesale deal. Simply assign your equitable rights on the contract you have over to the new buyer for a fee. There are lots of standard wholesale contracts in the forums and online in general. Just make sure to check your local laws.

I would recommend a hard money lender. Commonly if you're putting up the money for the repairs, that will suffice for your down payment so you'll just need to come to the table with closing costs. This will depend on the HML. Most HM lenders will do 70-80% LT ARV with 100% of rehab for 6-12 months. 

There is a lot more to consider that just cash flow when investing. Where is the property located? I see that you're in California which is typically a high appreciation area, if your property is in California as well that is typically a different investment approach. Many investors only break even or lose cash flow the first few years in exchange for huge appreciation in the value of the property they're holding. Also keep in mind, the rehab, if done properly will force appreciation as well giving you a greater return on your investment as well.

Aceable agent is the most interactive and informative one out there. Check Groupon for a discount code as well. 

Rentometer.com will be your best friend.

The short answer is to research your market to educate yourself on he cost of standard repairs so you can get yourself in the ballpark. Reach out to contractors with standard questions they can answer quickly without coming to see the property and compile a spreadsheet for yourself. For example, ask the price for a standard 1 story roof placement on (whatever the average square foot in your area) home is. Then you can approximate more or less on other deals. Flooring and paint go off of price per square foot as well so once you know the base for your area you can do the quick math. Bathroom remodels are typically a standard price that you can plug and play. The main thing is to get rough estimates based on a 'standard" property and adjust up or down according to the size and scope of the rehab to give yourself a rough idea. 

I'd love to help but a need a bit more clarity. Have you already purchased the property and you're asking about refinancing or are you asking about the acquisition? 110% LTV is typically seen on the acquisition side and that 10% goes toward the DP or rehab depending on how you've structured the deal. 

You should be perfectly fine doing this. My first flip was under my DBA because my LLC was pending. I used Kevin at Wildcat lending and I'm in Texas. What area are you in specifically?

You can secure funding in your LLC through DSCR loans, private lenders, portfolio lenders (local credit union) and hard money lenders. All of these lenders are asset based so they care very little with regard to how long you've had your LLC. Each lenders specific requirements will vary however.