All Forum Posts by: Alex Bekeza

Hard money for the purchase may be necessary depending on how distressed the property is but once its stabilized you could refinance into a lower interest rate, longer term commercial loan.  In either event, expect lenders to require 20%-30% of your skin in the game. 

With 30K you could find a hard money lender that would do 75%-80% LTV of the purchase as well as lend you some renovation costs which would typically be dispersed in draws. Keep in mind though most first time investors take a 5% LTV hit from lenders so 75% may be more realistic. But remember you'll need to save funds for not only reserves but closing costs which can tend to be a little higher in the form of origination charges when it comes to HML. Hope this helps a little.

 Good luck on your first deal! Looking forward to you posting the progress!

@Michael Glotfelty

A belated welcome to BP.  Just came across this and thought Id' mention that @Jeffrey Isenberg and his multifamily investment group just started a great meetup in Sherman Oaks. 

 https://www.meetup.com/Sherman-Oaks-Multi-Family-R...

I highly recommend checking it out.  Hope to meet you there next month.

All the best, 

@Marc Sinnott Congrats and looking forward to the pics you post in this thread!    

Feel free to reach out with any fix and flip financing questions in the future!

All the best, 

@Alfredo Martinez , my pleasure.  I agree with you.  I would just scrutinize the docs myself and address any question you have with your loan officer/mortgage broker.  It's their/our job to make sure you fully understand the terms.  Don't be afraid to push them hard on any specific issue because they definitely want your business and should be able to explain anything that seems iffy to you.  

As with any refinance, 2 things I'd just like to point out that you'll want to full understand or ask detailed questions about are:

1.  ADJUSTABLE RATES- If its an adjustable rate mortgage at some point during the life of the loan, you want to understand which index they use and what the margin/caps are.  

2.  PREPAY -  You definitely want to understand the prepayment penalty system for the new mortgage as it could dictate your future plans with the property.  

Hope this helps a little.

@Alfredo Martinez Of course it couldn't hurt but are there any specific provisions of the docs that are a red flag to you?  Maybe the BP community could chime in if you give a little more info.  

Best of luck, 

Most likely, the lender will not consider that basement as a 5th unit even if it is used as one.  It will come down to exactly what the property is legally zones as.  If zoned single family, they won't count more than 4 units.  

Great flipper/developer opportunity right near Santa Monica BLVD. Someone is bound to bring this place up to its true potential and catch up with its surroundings. $1.53m Purchase with a potential ARV of $3.3m. If you have any interest please shoot me an email to [email protected] with "West Hollywood R3" in the subject line.

I would also be able to help line up 80% LTV interest only financing on this one for an experienced investor.

Should be able to close this up with hard money in 10 days.  I've sent you a little more info via private message.

All the best, 

This all sounds pretty scary. Calculating ARV does not require thousands of dollars. Nor should due diligence from a lender unless your talking huge distressed property deals or 10 + units.

Do not ever pay up front fees other than a BPO or an appraisal.....

I've seen a few lenders who have had to come on BP and try to do some damage control like this...

I have zero experience with Do Hard Money so I can issue no critique. Only thing I can say is that you should only pay a lender when they fund your deal.  Period.  

Nothing looks alarming to me.  Especially if you are a first time investor.  Would you mind revealing the lending institution?