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Updated about 7 years ago on . Most recent reply

User Stats

11
Posts
2
Votes
Alex Gorges
  • Property Manager
  • Cleveland, OH
2
Votes |
11
Posts

Looking to do hard money on my next flip how to go about it?

Alex Gorges
  • Property Manager
  • Cleveland, OH
Posted

Just completed my first flip, and it sold in 2 days! My uncle was the finance guy putting up the 20% down, covering the rehab costs and holding. I did 100% of the work myself took about 12 weeks to rehab. The drawback was taking 3 months just to get a conventional investment loan. Luckily the seller was a friend of the family and it was no problem getting contract extensions. 

Purchase:75,500

Loan fees and closing :5000

Uncles cut:10000

Materials: 14000

Holding 2000

Real estate fees & closing: 10000

Sold:138,900

My profit: ~21,000 

I have found my next potential flip 

43k 3/1 with partial finished basement. Outdated electrical(my dads a LU38 sparky & I'd be calling in my 1 favor on this one) , full kitchen & bath remodel plus rest of house is 100% cosmetic rehab. 

Estimated time: 16 weeks or less. 

Rehab budget 20-25k materials I would do 80-100% of the work whatever I can't do 100% right I sub out that's how I roll as a solo contractor. I would cover the rehab budget would just need an HML for 45-50k to cover acquisition. 1 year term just to be on the safe side.

So my question is what are the steps to dealing with hard money? 

I found the deal, how to I get all the ducks in a row to execute this deal?

How does this person play a roll in the purchase, offer and contracts of this deal.?

How do I approach as a buyer once I have an HML backing me?

And lastly is there anyone recommended in the Cleveland area? 

I am a Remodeling contractor with 11 years experience in the field have multiple flips for other people under my belt, just completed my first "solo" flip in middleburg hts and found this deal in brook park. Thank you for reading and looking forward to your responses. Any and all help is greatly appreciated!

Most Popular Reply

User Stats

805
Posts
346
Votes
Ryan Arth
  • Real Estate Agent
  • Cleveland / Akron, OH
346
Votes |
805
Posts
Ryan Arth
  • Real Estate Agent
  • Cleveland / Akron, OH
Replied

Alex Gorges BP actually has a directory by state.

Also, I don’t know what rate you are looking for. Higher rate 15-20%, easy to find. There are people at a breakfast Meetup in Akron, a guy at the Akron REIA who advertises there and a commercial broker in the CLE area. There are plenty of others.

If you want to borrow for 8%, that can take a more personal connection and some time.

Anything in between is possible as well. Work your network.

Do you have the property under contract and how sure is your ARV. They are going to want to know that.

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