All Forum Posts by: Adam Bartling

Emerson, if the municipality allows it go bigger!  when you start adding more units the amortized cost decreases.  The builders I work with in FL their cost to build on the cost not the sales price is starting at $180 per sqft with CMU homes yalls wind load is a little higher than most.

When you are dealing with the builder, you should be preapproved with your lender and you will Not have to Prepay your builder!

The lender will take care of the verification of your builder to make sure they are legit, experienced, licensed, risk plan, no liens, etc.  Lender and builder will also set up the draw schedule.  Once the builder has completed a phase, they will request an inspection, Third party inspector comes out, verifies and then lender sends check to builder in 3 days.

I do construction loans for developers, home builders Spec Homes and Home Owners. And yes Conv. FHA & VA One Time Close New Construction Also!

@Timothy Stoops You are in my arena now. Let's review that deal!

Real Lenders get paid at the closing table.  I help with all types of property loans.  Hard Money comes in a couple different forms.

1) Private lending companies

    They do a deep evaluation of you and your property but have the best rates and highest LTVs 70-80% & 6.6%-10% Interest

2) Private Individuals

They are typically 12-15% but must meet the criteria and typically top out at 70% LTV with purchase and reno.

Let me take a look at your deal.

 Yes, the biggest mistake I see with all the Fix N Flip loans is they are not keeping a 30-40% margin.  If you have to work 10-20% margins will kick your ***.   The 2022 and 2023 tax values are unsustainable inflation.  Many are up 70+. I have seen 420% increases on tax records on a 16 unit in  Galveston County ($52K tax increase).   I get it, most everyone here makes a living on RE, but half of the market can not take the inflation, their wages are not able to keep up.  And never bank on getting top dollar, if is happens great...

I broker many lenders so my loyalty is to the client and not 1 company.  @Zane Abner Let's talk and send me your project details 

@Michael Furey Super simple, do not think that you must have the $13K remodeled bathroom in this house.  Keep it consistent with the neighborhood. Just clean it, make repairs and new paint, pressure wash etc.  Also look at 2020 tax value.  Do Not look at 22 or 23.  If you can make it work with 2020 tax value as your sales price you should be good to go!  (obviously RE is an auction)

@Jake S. If your property is 2 units then you are converting into 1..... maybe a misstype??

I can look over the #s for you.  I can tell you most lenders now want to see 1.25 -1.3 DSCRS, unless you are doing some reno and value add.  

If you are going to be living in the unit there are options in the 3-5% DP range. Does that work for you?

Well when you get something you like I can run over the #s also and look from a lenders POV

@Donald Bastien Just Do It!

We see wholesalers with no idea of cost of renovation or true APV.  The good ones leave meat on the bone and understand all of almost all of the $ made will come from volume