All Forum Posts by: Aidan Mulligan

Mainly about timeline:

Tasks are create a scope of work, get a contractor to give you an estimate, find a lender to lend you money in an amount you don't currently know, and close the deal within an unknown budget. My background is in construction so I can come in a ballpark of the estimate but how do these processes work in time.

In my mind, I find a home and because it's a hot market I need to put in an offer quick, so I tour the home and create an estimate in my mind, then while I'm sending that to a contractor and waiting on a bid so that I can make an offer that works financially someone else buys the home. OR the GC is quick and I can offer but the HML isn't satisfied with the LTC vs the ARV and funding doesn't come through.

So should I be calling the HML beforehand and tell them "This is the range I'm looking, can you lend" and then 5 weeks later call them up again and ask them for the money once I found the deal? Should I give a GC a hypothetical and have them on standby? I feel like GCs don't want to waste their time on hypothetical estimates.

I guess my confusion is on the acquisition. I can handle the rehab, I can handle the refinance, I know what I'm looking for in a project, but when it comes to crunch time, I don't know how to get from finding the property to closing the property.

@Michael Fichman @Vincent Lewis @Patrick Menefee I don’t have any real world experience in the business aspect of real estate but I do have quite a bit of experience in the construction field so I’m trying to connect the two worlds

Im brand new starting out and I’m looking for rentals in the Gastonia area. Would love to get your take on the area like where to avoid and where you see starting to move.

I am as well, I’m trying to get a good understanding of the financials and the best route to take. Would love to talk with someone about their projects.

@Jason D. I’m not sure why I automatically assumed I had to take the whole 70%.... 

But the intitial reason I asked was I was thinking about, what if I were to go away for awhile and didn’t want to refinance for money that I wasn’t going to be using in the foreseeable future. But thank you for pointing out what clearly went straight over my head.

@Jason D. this is more hypothetical, but I see where I messed up there not factoring the 70% LTV. I'm just trying to understand how someone would go about a situation like this. So let's assume the finances are more appealing. Let's say ARV 120,000. LTV would then be 84,000 and the cash difference would be 39,000. How can someone who doesn't want to trade from 45,000 to 120,000 but also doesn't want to sell to pay back the HML go about this. Is there a bank that would just loan me 45,000 as like a mortgage to pay off the debt I put into the home?

So say I get a 9 month $45,000 hard money loan. $27,000 for purchase $18,000 for rehab and the ARV is $70,000.

Where I am confused is that with the refinance, I would cash out at $25,000 and then be paying back a $70,000 loan instead of the $45,000 hard money loan. Now I have to pay back the hard money loan at 9 months so not refinancing isn't an option. However, I don't want to trade a $45,000 loan for a $70,000 loan. 

I don't plan to go straight into a new property so I don't need the cash. I want to rent so I don't want to sell. What other options are out there?

Charlotte, North Carolina I should clarify

Hello everyone,

I'm looking to flip homes in the Charlotte, Gastonia, Lincolnton area and am in search of a home contractor. Any referrals to a company or database would be awesome.

Happy hunting.

Lets run the timeline

2010

Grantor: "B" Wholesale

Grantee: Maiers

Special Warranty

(signs point to a Foreclosure sale)

2009

Grantor Henderson

Grantee: "B" Wholesale

As Substitute Trustee

(Signs point to a foreclosure)

2007

Grantor Humphrey

Grantee Henderson

Non Warranty

(Humphrey sold share in property to Henderson)

      Transfered to Trust in "A" Wholesale

2006

Grantor Abernethy

Grantee Henderson and Humphrey

General Warranty Deed

So my question is two part. 1) Why would someone sell their share in investment property through a non warranty deed? 2) What is the risk level in purchasing a property that was sold with a non warranty, then trusted and sold through foreclosure. Disclosure, I'll be hiring an attorney but wanted to at least see if this is even worth the time.