All Forum Posts by: Vik P.

I have studied most of the available loan products out there.  IMO it really depends on your strategy and your investment style what your overall plan?  I work for a lender my honest opinion is don't borrow money at all.  Let me explain.  Lets use a simple $300K flip for numbers.  On average it cost you 2 points plus closing costs to acquire this property.

1.Cost to get loan funded most lenders 2 points and up= $6k

2.Closing costs = we will round it up to $4k 

3. Carrying costs = 6 months is average flipper hold time 10% intrest average soft money loan cost = $2400 a month = $14,400 (minus downpayment of 60K) = $2400

Total costs to acquire and hold minus all other non financial costs = $24,400

You guessed it! On average a $300K home costs you $25,000 to hold in financial costs!!!!!!!!!!

This means you need to profit an additional $25,000 per project to come out ahead, want to make $25K in profit from the start of your project don't borrow money.

So this is one of the many mistake undereducated and ill advised real estate investors fail to take in to account the real amount of money it costs to carry most projects.  

Like I stated its better to not even borrow money if you can avoid it at all costs, and it does cost about $25,000 to borrow!!

Does anyone have a referral for a property manager in copperas cove Or Killeen?

@Vik P. Thanks, so do you have any good experience for HML side? I plan to do a few flips (5~6) not too many ,so HML is way for me to go, thanks

@Vik P. Can I know any details about the product you choose as LOC or HML mainly for flippers? Not for BRRR, not for Buy-and-Hold? Thanks

@Vik P. I have not deal with this lender but similar to other LOC. But I can say there are better options available.

50k min liquidity x10 LOC.

90% LTC- 100% rehab -75% LTV ARV max.

12 months term on each deal you submit

You can submit a deal 30 days before the 12 month review.

2 options available- interest on full amount or interest on purchase and rehab (lower rate)

I just terminated a contract with them. I will not be using them for any future deals

You’re right. Most of the lenders use AMCs after the 2008 financial crisis and this was the only lender that I have come across so far who provides that option but I am sure there are others

I haven’t done a refi with them yet as I am still waiting for my quad to get occupied but going through various posts on BP about financing from various people I know they are very legit private lender. I will update this post based on my experience when I actually submit the application as I plan to use my own appraiser I know in the area.

Wow, one of the reasons most lenders went to blind appraisals - not even the loan officer could hire the appraiser was because of mortgage fraud and people paying off the appraiser to bring it inhigher or lower than it should be.  But all things do come around again.

Hmm, but if you are refinancing, the lender will select the appraiser, the borrower doesn't really have a say in the matter.