All Forum Posts by: Chris Seveney

I’m using a new build as a rental property. My question is will I be able to take a mortgage out for the cost of the build or will I have to take out a mortgage at what it appraised at? I want to keep the mortgage as low as possible because I will using the VASH program for my tenants.

Found a $7M+ 1st position NPL while sourcing. Near West Coast, multifamily almost done with construction.
Low LTV. ,Note's got a nice default rate. Seller wants full balance, no discount.

Could be a good play for someone after the default rate or a developer/investor who’s down to take a shot at the asset.

Brought it back to a group I was sourcing for, their response was to cut the agreed commission in half and throw in a bunch of excuses.

they don’t have the address. just the above in a more detailed manner.

Looking to move it. What would you do? 

I have been shopping around, but it’s been challenging.  Either the percentage rate is high or the closing costs.  Wondering if I’m missing out on a strategy.  

This is a house that is zoned for commercial use. It's occupied and I have 3.5 years left on the current lease. It cash flows and I'm at 70% LTV.

The commercial loan world is so different from conventional. 🤷🏽‍♀️

Hello,

I'm a buyer and the seller is willing to do seller financing. 

Purchase price $300,000

Downpayment $25,000

I will pay the seller $5,000/mo for 1 year (while I rehab the house) and then balloon payment at the end of the year when I sell the house and it closes. 

$300,000 - $25,000 - $60,000 (12 x $5,000) = $215,000 

Balloon payment $215,000.

The seller still has a mortgage and pays $1,500/mo.

Should the monthly payment that the seller maked during the year be added to the balloon payment? $1,500 x 12 = $18,000.

New balloon payment would = 215,000 + $18,000 = $233,000.

I'm not sure if it should be included or not. Thank you for your help in advance. 

Franck

Hello BP!

I have a growing community of friends / colleagues / et al who are interested in putting their money to work passively by private lending. I've been in the private lending space for about 1 year, and have lent on 3 projects to date. I have connected with many borrowers who are asking me to lend on their deals, and while many of these deals sound very attractive, I'm limited in my own source of funds, hence the reason for this post.

Background: I've been a designer and developer for the last 5.5 years, specializing in large gut renovations and ground up construction of single family homes and small multi unit buildings in the city of Chicago. I own and operate a few rentals, both mid term furnished and long term unfurnished, in 3 different states. I am an Illinois licensed real estate agent (mainly used for my own developments).

My Role in these private lending partnerships: Source and vet the borrowers, underwrite deals, originate, manage and service the loan, be a fiduciary. 

Context: Currently I lend in both my own LLC (just me, sole owner), and in a separate LLC (JV between one of my capital partners and me). This works well, but seeing as new people want to come on board, I don't believe creating a new LLC for each new capital partner makes sense, nor is it scalable.

To clarify: I am NOT looking to pool funds or syndicate at this time. Merely to lend more borrowers money on more of their rehab / flip deals, as well as offer transactional funding for same day double closes.  In essence - each new capital partner would lend only on one deal with me. I will NOT be mingling funds from multiple partners on the same deal.

Locations: Over the last year, I have lent only in Chicago IL, where I'm presently based. I'd like to start lending in other states - Texas, Florida, and maybe some others as well as Chicago.

Goal: Before presenting these lending opportunities to new capital partners, I'm hoping to glean more insight into the wisest, most efficient way to structure these partnerships to protect everyone involved. I've read/learned a little bit about: Partnership lending, table / wholesale funding, fractional notes, lending trusts, note on note. 

> Is one of these the best option? 

> What other options are there that are streamlined and will protect everyone involved?

> Which type of attorney I'd need to hire to draw up a legal document(s) for this type of partnership?

Thanks so much in advance for your wisdom and advice!

I have a commercial property that I am converting to residential. The property also has a commercial loan tied to it but in order for me to get certificate of occupancy from Village I have to spend $40-$50k in renovations.

Is there any lending options for me to do a cash out refi by refinancing to residential loan even though it is classified as commercial currently? Or another way to take out money. For reference I have 75% equity in the property based on residential ARV comps.

Hey guys, I have noticed that I pass up about 2-3 decent deals/ year due to not really having funding, I also have a mindset where even the smallest wins count so If I can make 15k off a flip - assuming that the numbers are very safe - I am happy to do that and continue it at scale. But I have had trouble finding partners to go in with me on deals like this ( 30k profit) Typically they want to see a percentage which is understandable, but I am wondering how all of you flippers / investors found your PML partner or if yall just use HML ??