All Forum Posts by: Alex Jacobson

@Alex Jacobson this scenario continues to pop up. The solution is WAY simpler. I'm not sure who's out there teaching such a structure to real estate investing (I'm guessing someone is teaching it because this keeps coming up) but this scenario is a "normal" acquisition. Meaning, a normal Hard Money Loan will lend 70%-75% of the ARV....which is more than enough to purchase this property AND rehab it with $0 out of pocket. There's no need to use so many loan/lien positions that carry difficulties in structuring and require downpayment/money out of pocket. Keep your money. Keep it simple. Depending on your exit strategy you would execute as normal to flip or Refinance after Rehab with the BRRRR Method on this type of a property. I hope this makes sense as I am describing it but feel free to ask any questions on it.

Thank you Andrew. You certainly make this simple!. I have such favorable rates with the seller financing. But I guess a lot of you seem to think that extra cost is negligible if I am refinancing anyway. Especially if that is what it takes to get the deal done. I am seeing that now.

0 Votes

Quote from @John O'Leary:

Use the hard money to get 80-85% of the purchase price on a DSCR loan, (assuming this is turnkey) and use seller financing for the 20% down payment. Have the seller hold a silent 2nd until the 1st position lender records the mortgage than have them attach the second. You will need to show you have funds but this is a strategy regularly used.

John when you say them, do you mean the seller or the hard money to attached the second? Thank you!

0 Votes

I have a project where the seller is carrying the note on the home with a 20% down payment. Now, I need private or hard money to do the rehab but no one wants to be in 2nd position after the seller.

My friend has advised me to get gap funding for the down payment but Im unsure how that plays into the hard money lender?

Purchase: 475,000

Down: 100,000

Seller carry: 375,000

Hard money needed: 150,000

ARV: 850,000

2 Votes

Will do!

0 Votes

Austin, I think thats my best bet. Do you have a contact in mind? thank you for the reply !

0 Votes

ISO company that does creative HELOC's:

I have a find with great equity in his home but not great taxable income. Are there companies out there that would give him a small loan?

Best,

Alex

1 Vote

Quote from @Sonal Chopra:

Wonderful ideas and strategies! Although I'm surprised that whole life insurance hasn't been mentioned as a strategy. Is everyone familiar with the pros and cons when it is coupled with real estate acquisitions?

Sonal, Although I am not an expert at whole life insurance as an investment vehicle but I can connect you with an expert that I trust!

0 Votes

These folks make it look to easy: and only $26,000 for a Stella kit?

https://www.masifev.com/en/house-models/

https://www.masifev.com/en/house-models/diamond-xl/

0 Votes

Denver, Colorado

Quote from @Ted Usatynski:

Hello Alex-

I am in Broomfield and been looking into similar development projects - where exactly are you planing to build near Boulder?

Hi Ted,

I would like to hear about your project I am having a meetup on the 28th to talk about this idea and others like it

Shoot me a message and I can send you the details!

Awesome you are local

0 Votes

Denver, Colorado

Magnus,

Would love to connect. I agree that seems to be only the 2nd hardest part to working with the local counties!

Lets connect! sounds like you have done this before:)

Alex

0 Votes

Denver, Colorado

All Forum Posts by: Alex Jacobson

Alex Jacobson has started 28 posts and replied 54 times.

Post: How to get hard money with seller financing?

Post: How to get hard money with seller financing?

Post: How to get hard money with seller financing?

Post: HELOC: without Tax returns.

Post: HELOC: without Tax returns.

Post: HELOC: without Tax returns.

Post: What would your Real Estate strategy be if you inherited $10MM?

Post: Ground up Constuction: looking to Build A-frames for STR

Post: Ground up Constuction: looking to Build A-frames for STR

Post: Ground up Constuction: looking to Build A-frames for STR

Alex Jacobson has started 28 posts and replied 54 times.

Rounded Star Post: How to get hard money with seller financing?

Rounded Star Post: How to get hard money with seller financing?

Rounded Star Post: How to get hard money with seller financing?

Rounded Star Post: HELOC: without Tax returns.

Rounded Star Post: HELOC: without Tax returns.

Rounded Star Post: HELOC: without Tax returns.

Rounded Star Post: What would your Real Estate strategy be if you inherited $10MM?

Rounded Star Post: Ground up Constuction: looking to Build A-frames for STR

Rounded Star Post: Ground up Constuction: looking to Build A-frames for STR

Rounded Star Post: Ground up Constuction: looking to Build A-frames for STR

Post: How to get hard money with seller financing?

Post: How to get hard money with seller financing?

Post: How to get hard money with seller financing?

Post: HELOC: without Tax returns.

Post: HELOC: without Tax returns.

Post: HELOC: without Tax returns.

Post: What would your Real Estate strategy be if you inherited $10MM?

Post: Ground up Constuction: looking to Build A-frames for STR

Post: Ground up Constuction: looking to Build A-frames for STR

Post: Ground up Constuction: looking to Build A-frames for STR