All Forum Posts by: Anthony Susco

@Matthew Rembish I would have been surprised, too.  What is the status of the deal?  Are you moving forward?

@Brandon Davis I think @Lukas Vanagaitis has great advice for you!  You have to treat this as a business even though you're working with family.  The more clearly you can define and document responsibilities, the better.  Doing business with family can be great, but you also have to be careful that it doesn't interfere with your personal relationship, which can sometimes be tough.

@Chris F. Even though you are using hard money and the lender has a first mortgage, you are still the owner, and you would be listed on the deed.  If you are looking to refi within the first six months, there are some national companies that will do refis with no seasoning requirements.  The rates will be higher than a conventional loan, but it could work for your situation.

@Quanda Allen You could consider becoming a private lender or do HML. There are many different ways to structure deals, and if you want to be actively involved you could make that part of the deal. I'm sure there are a lot of flippers that would let you be involved if you are willing to fund their deals. If you want to negotiate a percentage of the profit, you could structure a JV deal that stipulates those terms.

@Matthew Rembish You have received some great advice, and I'm glad to hear you'll be following it and getting your own representation.  Also, make sure you analyze the overall deal and ensure that there is enough spread.  If you are taking a second position (assuming there is already a first mortgage on the property), you don't have much protection in case things don't work out.  Additionally, you are definitely giving your realtor a good deal by giving him funding at 10% for a second position!

@Jason Unrath I would start talking to HMLs ASAP to make sure you have the funding lined up.  Also, walking through the property will be key in determining rehab costs - pictures are tough to go by.  As long as the seller is ok with it, I don't see why you couldn't bring your contractor through.

@Sara Finley As mentioned by @Priscilla Z. I think it will be hard for you to find a HML that will lend you 100% LTC, especially on your first deal. Also, a lot of HMLs have minimum loan amounts of $50k.

If your current rentals are doing well and you have some equity, maybe you can pull some of that out and use it for this deal? If not, you might be better off waiting until you can save up the cash to put some skin in the game with a HML.

@Danny Gordon I think where you decide to invest should be guided by your strategy and goals.  If you want to build up a passive rental portfolio, out of state investing  (potentially through a turn-key platform) could be the way to go since property values are much lower and returns potentially better.  However, if you are looking to flip properties, I think you are better off in areas that you can get to easily.  As already suggested by @Naum Raz and @Mateusz Prawdzik there are good areas in both NJ and PA in which to invest.  In my opinion, Northern NJ has some great areas for flipping but rentals can be tough due to the high property taxes.  South NJ also has good areas and the property values tend to be lower, so your $100k would probably get you more options.

@Kyle Hoyt if the ARV is $125k and the rehab is $30k and you bought the house cash, you should be able to find a HML that will fund it. What was the purchase price of the house?