All Forum Posts by: Andrew Earle

@Kenneth Garrett DSCR is around 1.2 including taxes and insurance

@Annalise Kingston Not sure what your price range is but I have a nice home in Gorham, great neighborhood, that I will have finished the rehab on within the next 4 to 6 weeks. Granite counters, hardwood floors, stainless steel appliances, etc. I have owner financed properties to the right people with the right money down in the past. I usually require them to refinance out within a agreed upon time. It should sell for about $260k when done but that’s with brokers involved.

Hey All! So right now I have 7 doors, 3 rehabs in process and a new duplex construction half way finished. Needless to say, juggling financing between private investors, HELOC loans, HMLs and new construction financing has been challenging. I was counting on the refinance money of a rehab property I just finished and rented out. It wasn’t a simple BRRRR as the bank that refinanced me is also the bank that is going to finance the construction of two duplexes I’m building on the same property beginning in May so they held some money back as collateral. I get that. However the same bank who had encouraged me to continue with my “value add” deal approach and let them know about other properties I want refinanced. The financing is through the commercial side of the bank. I have brought I rehab deal to the that I am about wrapped up with. I’ll have 185k into this beautiful split level home in a desirable town and neighborhood near where I love that will sell for over 250k easy. I asked my banker what I need to rent it for to get my 185k back. His response was “2100/mo NNN.” $2100 a month is right in trance but throw another $450 on there to cover taxes and insurance, no way! Why can’t it be simple? At appraised value of 250k, 75% is $187.5k. Shouldn’t I expect that back from a bank refinance on a BRRRR? Do I need to be looking for another bank?

@Jim Goebel Ok, so I found out what Bank now owns the property the registry of deeds. You say “pay off what is owed and you own it.” That would be amazing! I have the cash. How do I go about that? Contact the bank?

I like the little house. Its 3 Br 1 BA ranch I found when ”driving for dollars.” Really I just noticed it on my way to my day job. It would make for a great rental or flip after rehabbed. It looks like the bank has identified it as abondoned as there is one of those stickers on the door. And I am sure that it is probably going through foreclosure proceedings. Is there a way for me to capitalize on this discover before it hits the MLS or goes to auction?? Any strategies or tricks?

I’m in the Portland area. I buy and hold, flip a few. If you do find any good deals you want to wholesale, let me know. 

I have two projects going currently and two rehab properties under contract that start by the end of the month. I have one great lead carpenter that helps manage my specialty subs and hourly workers but also does a lot of the work from roofing to finish work. He can probably handle and manage the other rehab at the same time but it will go slower. Additionally, I have been presented with two more real estate opportubities and I now have a good funnel of private investors. The bottleneck for me is finding another one or two good lead carpenter/ project manager. Anyone in the Southern Maine area have any suggestions? Or does anyone from other areas have a good strategy as to how to find another reliable trustworthy and hardworking lead guy?

@Sean OToole Crazy story and great advice! Thanks!

@Greg Dickerson Thanks. That does make sense. I appreciate your professional repsonse.

On rehabs, I often go to Craigslist to find a quick inexpensive worker for demo and small jobs. I haven’t given it too much thought until recently but what type of forms should I consider to have them fill out to start keeping everything legitimate and safe. I’m starting to scale up an dI need to tighten up my systems. Should have them fill out some type of subcontractor agreement that includes hold harmless language? Is this a conversation I need to have with my insurance agent? What do you guys do?