All Forum Posts by: Andrew Michael

At an 80% deal with your fee included you would need to get this under contract at around 138k.

(ARV x .8) - 40k (Reno) - 6k (Assignment Fee) = 138k

Not far off here so I would shoot an offer in at the 120k mark.  Also, make sure your contract is assignable.  I have seen tons of people trying to assign non-assignable contracts lately at which point they have to go get an addendum.  

Good wholesale deal for a new investor.  Very easy cosmetic flip.  

Ask - 220k

Rehab - 25k

ARV - 317k

Open house this Thursday, May 24th at 10am.  Please message me for details and a pic link.

Most everything you see on the consumer level is just purchased and packaged big data with UI's targeting a specific use or audience. In the real estate space I believe it is Black Knight and one other where 99% of REI data comes from but you will have to fact check me on that.

I would guess that companies we are buying lists from are spending a good amount of time on QC and sales rather then actual organic data collection but that's an assumption on my part.   

@Gordon Cuffe

We do DC, MD and VA. We try to stay north of 100k loans however there are always exceptions if the deal makes sense.

I am really excited to use it on a personal level hah.  

Hey all,

I wanted to share an exciting new product we have been working on that is now open to the public. We are proud to announce our 2 year rental product that allows rehabbers to immediately roll their flips into a long term rental loan.

Why is this amazing?!?Not only is this a great tool for value add plays or quickly building a rental portfolio but I see immediate benefits for the rehabber/ landlord as well.

First, it allows you to operate and execute the BRRRR strategy all under the guise of your LLC rather than in your personal name.While hard money lenders are great for rehab projects it is very rare that they will let you place tenants in the property.Secondly, it eliminates the need for you to season your property and wait 6 month before you can refi. More importantly, it eliminates the need for you to refinance at all therefore saving you time and a second set of closing costs. With us, you are essentially modifying your existing loan to a lower rate. This drastically opens your exit strategy possibilities.

Lets run through an example so we can visualize how this would play out. Below is a typical example of an 80% hard money loan for a fix and flip project. (Please note, for simplicity I am only factoring in the carrying costs of the loan itself.)

Example Parameters

Purchase Price = 100k

Rehab = 50k

ARV = 230k

Rental Income = 2,300 (1% Rule)

Phase one: The initial flip

12 Month Loan (No prepayment penalty) - 3 Points at 12% (80% Funding: Purchase + Reno)

Purchase Price: $100,000.00

Renovation Price: $50,000.00

Total (Purchase + Reno) $150,000.00

Closing Cost: $3,000.00 (Estimated 3%)

Insurance: $900.00 (Estimated)

Commitment Fee: $1,000.00 (Estimated)

Appraisal Fee: $350.00 (Estimated)

3.5 Points: $3,600.00

Proposed Loan: $120,000.00 (80%LTC)

Buyer Brings: $38,850.00 (Estimated)

Downpayment $30,000.00

Monthly Payments = $1,200.00 (Loan amount x 12% / 12 months)

Now, let’s assume that your flip went smoothly and you were able to finish in 6 months. Let’s also assume that you began marketing your property to potential tenants towards the end of your flip and you have a tenant lined up with a lease set to begin at the 6 month mark. This leads into phase two of the loan.

Phase two: Rental rate reduction

At this stage, we will need two things. A copy of the lease and an assignment of rents. As soon as these requirements are met, we will reduce your loan to a long-term rate of 8%. Expect to pay another point or two here but you will avoid paying a second set of closing costs as well as the previous 12% interest.

Your new loan now is as follows:

2years (No prepayment penalty) - 2 Points at 8%

Monthly Payments - $800.00 (nice cash flow here)

Imagine a flip that is not only finished in 6 months but is immediately rate reduced AND generating income. For investors who use the above-mentioned strategies, this would be a significant benefit and improvement to your bottom line.

I believe this product will bring tremendous value to investors. It provides the opportunity to act fast when a deal presents itself while simultaneously offering you the luxury of time on the back end. Furthermore, you are awarded the gift of convenience. Loan modification is easy and cost effective. This loan product will allow you to do more deals, save time, and most importantly save you money.

If you are interested in learning more, please reach out anytime. I would love to take a look at any deals you are currently working on and see how we can best work together.

Hi @Michelle Thomas, Beth is correct. It largely depends on how much leg work you have done and how involved in the process you want to be. I have paid out $200 all the way to deep in the 5 figures. For me, a common referral fee for a SFH in PG is going to range from $500-2k. In DC that number can climb very quickly, especially in condo conversion land.

Hey all,

I wanted to share my latest deal with everyone.  What makes this one particularly special is that it was with BP members from start to finish.  While I will not be sharing specific numbers as to respect the confidentiality of the others involved I will say it was a win win win win for all of us.  Furthermore, the biggest success here is not the profits we each took away.  The real value and lesson is the  power/ potential this site has and how important networking with like minded individuals is.  

It began when I was approached by a BP member with a wholesaling JV opportunity last fall. The original plan was to help them wholesale the deal and shop it to some of my buyers. While this plan surely would have worked I live pretty close to the property and after the first visit I let them know I was interested for myself. In the interest of time and wanting to secure his first wholesale deal, he agreed to sell it to my partner and I.

My partner/agent (whom I met through a BP member) and I evaluated the project as we always do.  Do we flip this, refi and presumably acquire a no to little down rental or just flip it outright and sell?  In the end we decided to sell as my current goal is to get cash heavy for some other strategies I am working on.  

Once finished, I posted the project on BP market place and immediately got about 5-6 people who seemed genuinely interested.  This was fantastic as is saved me time and paying additional listing commissions.

In the end we chose a very strong buyer who was easy to work with and presented a very favorable offer.  The property ended up appraising for exactly what we had anticipated (30k over our asking) and we delivered a cash flowing multi-unit property in an area where multi's are hard to come by.  Even more of a bonus, the now owner got so many calls from potential renters that he was able to raise the rents a good bit more then I had anticipated/quoted him.  More profits for him and an even better cap rate! 

I could not be happier for him and the transaction as a whole.  All around great situation.  

Work hard, stay humble, on to the next :)

@Andrew R. 

Shoot me a PM when you can.  I have a really good guy down there that I send a lot of referrals to.  I would be happy to share.  

For Multi's Russell pretty much covered it.  The only place I would add is Carroll County.  There are multi's there, specifically out towards Wesminster and Hampstead area.