All Forum Posts by: Aidan Alexandre

Hello! Me and my business partner have recently started an LLC and are looking to invest in fix and flip properties. We are based in NY, mainly looking to invest in the Hudson Valley area. I have been looking towards the Westchester county area, and suburb areas north of Westchester, like the Poughkeepsie area.

For those that are familiar investors in the area, where would you recommend looking to invest as a beginner?

And for all investors. How do you get good comps with no MLS? I've been experimenting with Zillow and Homes.com to practice analyzing and getting close to accurate comps. But a lot of the time the surrounding houses have been sold quite some time ago, and they are incomparable when trying to use appraisal rules.

2 Votes

Quote from @Brittany Minocchi:

Quote from @Aidan Alexandre:

A friend and I have started an LLC to begin real estate investing. We plan to flip houses to start and eventually branch out into different forms of real estate investments. We are approved for a HELOC of $100,000, but would like to use that money mainly for down payment and repairs if we decide to take it.

If not we could work out a down payment with cash, and finance the repairs through our day jobs. The problem is, we don't know where to go to finance the house under the LLC. We were hoping to get a much higher HELOC because of the amount equity in the home, but the debt to income ratio was just over the limit by a few percentage points.

The debt can be lowered and we could achieve a $230,000 HELOC, according to the mortgage broker. Should we attempt to lower the debt to income ratio, and get the HELOC increased to give us more wiggle room? Or stay at $100,000? And where should we look to get financing for the mortgage?

It is our intentions to only have the property for a short term, we don't plan on using the HELOC again, as long as we meet our goals. If all goes well when our money is liquid again we would roll it back into another investment. We are pretty much just looking to get ourselves in so we can learn through experience, and create a portfolio.

Any advice and knowledge would be very much appreciated, we are excited to get into the business!

If you’re not planning to hold the property, you could do a bridge/fix and flip. This could be used to finance the purchase alone, or the purchase and rehab. Definitely have an exit plan to replace the funds from the HELOC - sounds like yours would be to sell the property and pay the bridge off. As far as closing in an LLC, you can do this with a bridge or DSCR depending on whether you’re looking for a long term or short term financing solution. You mentioned working with a mortgage broker, have they not given you any options outside of the HELOC?

If you want to lower your DTI there’s no harm in that, but don’t over-leverage yourself. Just because the equity is there doesn’t mean you should use it all, especially if you’re a beginner. Utilization will be better on your credit if you use $50k of a $200k line vs a $100k line, just make sure you’re disciplined when it comes to using the funds and paying them back.

Feel free to connect if you have any questions and good luck!

Thank you for your input! I have emailed a few hard money lenders this morning and will do research into the DSCR loans. From what I am understanding you suggest to get a hard money loan and when the repairs are done and we are ready to close bridge it into a DSCR loan?

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Any advice and knowledge would be very much appreciated, we are excited to get into the business!

1 Vote

All Forum Posts by: Aidan Alexandre

Aidan Alexandre has started 2 posts and replied 3 times.

Post: Where To Flip and How to Comp

Post: Where To Borrow For LLC

Post: Where To Borrow For LLC