All Forum Posts by: Assaf Kehati

@Aaron Pfeffer thanks so much!

Thanks, I'm only giving the purchase price, not the rehab. Actually giving less than the purchase price.

Hi everyone,

I'm giving someone a private loan (hard money) to flip a house. My loan would be recroded in the mortgage on the house as a first lender. The value of the house before the fix etc is less than what I'm lending.

My question, is it safe to give the loan to an LLC the guy have or should I insist giving the loan directly to the guy?

In any case I'm transferring money only to the title company.

Thank you.

Hi @Chris T.

It's a loan.

Person 1 (me) giving $50K loan

Person 2 (a friend) giving $50K loan

Person 3 (the guy that is buying, selling, and managing the work) is giving $50K (investing)

House purchase price $115K (it's in decent condition)

Houses of the exact size in the area $200K 

Terms: person 1 and 2 getting 5% for their money (and the principal) when house is sold or after 6 months (whatever comes first).

If the house is not sold after 6 months, we are giving 3 extra months at 1% for each month, and after that (total of 9 months) we can sue for the money or sell the house ourselves and take our principal and interest. So roughly the loan investment and the interest for total of 9 months is 50+50 and 8% (5 plus 3) so around $108. I feel it's hard to loose if we need to sell the house and then take that money out.

My question is what else can be good to put in the contract?

We are like a bank that is giving a loan and not as investors.

Hi everyone:

The deal briefly is: we are 3 people. People 1 and 2 (which is me and another person) are given a loan with fixed interset to a third person to flip a house. Each one of us (including) the 3rd person are putting $50K each.

We already agreed on the interest rate and loan period, what else should we included in the agreement?

Thank you.

Thank you @Aaron K.

Hey guys!

What would be the lowest possible mortgage rate you can get from a private lender?
And any recommendations for such?

Thanks and have a great Thursday!

@James Brand thank you. the place is the next block west from Broad St. what do you think?

Thanks @Sen A.

My numbers about mortgage, insurance at stuff are correct and those are the actual numbers.

The question is if to go more on appreciation like you said or just wait for a better deal cash flow that might be appreciated as well.

My agent says that if I buy for 250K now and next summer for around 20-30 in fixing up things I can sell it then for around 350K but of course it's all estimated. The place now is in fair condition, people live there, and it's decent, but not updated.

Hey guys,

For you who knows the Philly market do you think this is a good deal:

Buying a house in Point Breeze, 3 bed, 1.5 bath, 1250sq ft. Really close to tasker morris station.

House goes for $250K. It think that the price is about right looking at comps. If you know the area well let me know what is your opinion. Zestimate is $315K.

Expenses would be: mortgage+taxes+home insurance= $1300

Management fee of $100 will be waived for the first year.

There are renters in the place with a contract till June 2019 and they pay $1635.

What I'm considering is that:

Get the place, have little to no cash flow and when the renters contract ends in June 2019 have them out and renovate the place and:

1. rent it out for more or

2. if the market is higher/ home value is higher after renovation, sell for a profit.

What do you think? Thank you.