All Forum Posts by: Account Closed

Hi, Ashley.

In my experience working for a private lender, I have seen a lot of investment properties in that range in Ohio and Illinois. Most i see are fix & flips, but if you are planning on doing an LTR i would advise doing research on the poverty and unemployment rates over there and see if they are a concern to you or not. 

Hi, Travis. 

You'll definitely want to use a hard money/private money lender. We do not verify income or DTI, just last 60 days of bank statements to verify closing costs. This allows you to acquire more properties without the worry of debt ratios. If you can put 20% down, as you stated, most PML/HML will require around that amount so it sounds like this is doable for you.

If you have any questions, i'd love to chat. 

Hi Adoni! I work for a hard money lender. Typically, when you receive a rehab budget or construction budget the payments are reimbursements. Meaning, if you were to borrow $25k for rehabbing and you use $10k for new counters, $10k for floors and $5k for new windows, you will have to have the projects paid & completed before a HML will pay out the amount.In this scenario, you have to have the capital ahead of time to afford it (whether by debit or credit) before you ever see the loan. Idk if all HML's run this way, but most do.

I don't have any advice on the HELOC with the lower appraisal but I do know most people go the HELOC route because you're getting the funds upfront, not reimbursed.

Hope this helps! 

First you have to have a plan of what you want done to the property. 

With what you want done, create a SOW (scope of work) sheet that you can use and send to different lenders (if you plan on using a lender). You'll want to speak with different contractors ( if you plan on using one) to see their labor costs. You'd rather over shoot in budget than undershoot. 

Not much advice, but hope this helps! 

As a private lender I have only seen short term fix & flips in CA. Buy & holds are very underwater right now. Rehabbing seems to be the only way, from what I am personally seeing. 

I have never heard of this requirement either. You could use a private lender to avoid any nonsense, as such. They typically are the best route to take when placing a property under any entity. As far as rates go, conventional is also an option, as the others have said, because they do provide better rates than PML do. 

 AWESOME!  I'm glad i could help. There are many ways to get started. Don't let anyone tell you not having 10's of thousands saved means you cant start. 

 Hello Jon! I have sent you a private message. We offer between 7-11.99% for bridge loans and 6-8.25% for 30 year. 

Hello, Paulette! I can help, would love to chat.

 I see, 

Yes you can always use a hard money lender whether you are new or a seasoned investor. Besides the higher interest, the issue you may run into with a hard money lender is they will want more money down as a new investor + closing costs and what not. With not having much to put down you may not be able to find one that will finance a high enough LTV. With hard money lenders, we also lend a minimum amount. For example, my company's minimum is $150k , so even if you have the idea to go cheaper so the down payment isn't that high, you still have to meet the minimum finance amount.