First Investment/ Flip - Loan to Purchase Process

[Joseph Taylor]

Hey Community!

I am looking at buying my first investment property. The property is in San Diego, CA. I am wondering if you can help me figure out the process of my first flip.

I’m a licensed general contractor so I have a very good grasp of what the construction/rehab process will be like as I have been the contractor for 75+ Flips.

There are two main questions I have with the process. Both questions revolve around the way that my money and loans will work. I will purchase this property using hard-money. I plan to keep and live this property.

First Question- Who and how do I use to con vert my hard-money loan to a mortgage? Which bank or institution can help me with this?

Second Question- How can I get at least my down payment back out of the deal?

Here’s the scenario:

Purchase Price:$520,000

Out of Pocket= Down Payment-18% ($94,000) / Closing Cost/Fees-$110,000

Construction Loan-$60,0000

Total Loan Amount-$468,000

@ 11% Interest= $4455 Monthly Payments

Estimated ARV-$675,000

Please let me know if all of this looks correct and how I can go about getting at least my $110,000 back out of the deal when converting to a 30 year mortgage.

Also, any advice would be greatly appreciated!

Thanks so much in advance!

Joseph