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All Forum Posts by: Al Bennett

Al Bennett has started 3 posts and replied 11 times.

Post: Help me analyze this deal!

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

He might be open to doing a 51/49 6-month split with no money down. OR he might go for a 6-month interest only payment giving you time to do the work and refinance. Are any of the units rented? If not, focus on the easiest one and get it rented. Be sure your new tenants know there will be construction on the remaining (noise, trucks, strangers around). I'd avoid a Heloc if possible, especially if it's going to tie you up for more than 6-months. (seeing a theme...)

Post: hard time finding a hard money lender in chicago

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

Odie,  Thanks for the education!

Post: hard time finding a hard money lender in chicago

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

Not to sound totally ignorant, but what is an HML?

Post: hard time finding a hard money lender in chicago

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

Eric, I'm just south of Chicago (Kokomo, Indiana). I'm also looking for a hard money lender who can help me with a sfh/3-plx conversion. Have you found one yet? My property is only 16000, but the rehab will run 95K, so my all in is more than the 100K. But most of the lenders I've spoken with also want a purchase price of 100K. Help!?

Post: [Calc Review] Help me analyze this deal

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

Great info! I can adjust as needed, but the remodel includes a new roof and all appliances, so I adjusted for that. 

Post: [Calc Review] Help me analyze this deal

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Post: [Calc Review] Help me analyze this deal

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

Sorry, forgot to tell you, I'm hoping to find a hard money lender to take on the entire project up to the 3/1.5 completion with monthly INT only payments for 9 months. Then I'll do the rest as time/funds permit. After full completion, I'd refinance the entire amount (hopefully at about 60 to 65 LTV). I would offer a 50% ownership for collateral and ask for pay-off at time of refinance. I believe the entire project could be done in 9 months.

Post: [Calc Review] Help me analyze this deal

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

Thank you! Yes,it's a circa 1887 SFH, but I would break it into at least 3, possibly 4 (the HUD rent numbers I ran actually work better at 3) units. One 3/1.5, one, 2/1 and one 1/1. The CapEx are based on this area. Also, I did some searching on OfferUP in this area and even though they would be used they should suffice for a year or so. I came in low on the repairs because it would be essentially a new build. The roof would be totally replaced, wiring, plumbing also. I do need to adjust for heat/AC though, good catch! That could run up the numbers a lot. I'm rather new at this so could you please educate me on the "underwrite to 15% combined" comment. Sorry, I don't follow... My hope was to purchase, fix roof, windows and the 3/1.5. Rent it for cash flow, then push the remainder as I can. Looking at a 6-month turn around for entire project. With HUD numbers, rents would be (at 100%) 2200/mo. Anything glaring about this deal. I'm really nervous since this is by far the biggest project I've ever even thought about doing!

Post: [Calc Review] Help me analyze this deal

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Post: [Calc Review] Thoughts on this cheap Indy deal?

Al Bennett
Pro Member
Posted
  • Kokomo, IN
  • Posts 11
  • Votes 3

If you're concerned about vacancy rate or tenancy in those areas, I'd recommend checking on HUD. They will provide a better idea of rents. Also, a HUD approved tenant doesn't want to lose that certification and you know that portion of the rent will be paid even if the tenant doesn't. Finally, you can always go to HUD and report them, so if you make clear to them that you know that they seem to be more 'earnest' about ensuring the rent is paid.