All Forum Posts by: Michael Baradell

Hey Guys,

I am curious on how purchasing a buy and hold property using private money or hard money loans is structured? First, what is a typical rate to offer the lender? Second, what should the terms be? I am under the assumption that you would refinance ASAP in order to pay off the original lender. Is this correct?

Hey everyone, Does anyone out there have any insight on getting a line of credit through an LLC startup? I know it's more difficult now than ever to even qualify for a mortgage, much less ask for a loan to start a real estate business, in which most fail before they ever get started, but I'm sure it can be done. The LLC would consist of a 3 person team and we would be able to use the proof of income from our " regular " jobs. We all have excellent credit as well. We are in the process of completing our first flip now, so we will be able to show them that we have some experience. Our business plan is to flip 4 homes this year, build up some cash and then begin building a buy, fix and hold portfolio. Any suggestions on how and who to approach? We aren't looking for a million bucks, just enough to cover a few down payments and then finish the projects with construction loans.

@J Scott I have accounted for all spending. The $115k amount is what I anticipate spending by the time closing comes around. Taxes and insurance are included in that amount as they were paid in full at closing, not escrowed. The financing I have is an interest only loan, so we have only paid three interest payments totally around $1350. The electricity bill has not exceeded $85. I have it listed my self, so I am only paying 3% to the buyers agent. I should have specified that ALL costs were included in the $28k ( minus 3% commission ).Because of the type of financing, I was able to pay ( and keep track ) of everything through the one construction account. I wrote checks for everything, no cash. There are no other concessions or closing costs that I will be responsible for at closing.

Thanks for all of the responses guys!! It really helps to see different perspectives.

I do have an update on this deal that I figured I would share. This particular deal started out as a fix and flip, however my backup plan was to fix and hold. I ended up listing the property and this was the outcome.

On the market for 33 days. In that time I had 14 showings and countless Internet and phone leads. Just yesterday I received two offers. The first was about 9k off asking price including closing costs. The other however, was for full asking price with no contingencies or seller assist.

Here's the breakdown of the entire process:

Purchase price- $85k plus seller paid $3k for closing

Initial plan- $15- $18k rehab costs, 4 week time frame

What really happened (haha)- total rehab and carrying cost up to this point

$28k!! Time frame- 9 weeks.

Selling price $143,900

All in for about $115k

When all the dust clears there will be a profit of around $24k before taxes. Of course there are still inspection so hopefully all goes well.

Overall, I would call it a success for my first flip. I have learned a ton, paid way too much to my contractor and mismanaged the project terribly, but it looks like I will survive!! BP has played a huge role in this process and I'm very thankful for that. On to the next!!

@Duncan Taylor I will have to get back to you on that. I am planning on going back tomorrow to get all info. I do remember it saying that it was a third party. I'm sure that is typical though. Is there something specific I should look for?

Hi everyone,

I am currently under contract on a short sale property and have been awaiting for the banks approval for about 45 days. I drove past the property today and noticed a "notice of seizure" on the door. The notice was dated 2 weeks ago. This being my first short sale, I am not sure exactly what this means or what my next step should be, although I am pretty sure that the deal is dead. The listing realtor will not respond to my messages and has pretty much been MIA. Any advice on how I can possibly save this deal?

Hi everyone!! I am exploring the option of partnering up with a private money lender and I was curious on how these deals are typically structured. I realize no two deals will be the same, but is there say a "rule of thumb" when structuring these deals? Here are a few of the questions that I have: Fees to the lender? Interest rate? Can the deal be a 50/50 split with no other fees? Term of loan? If the plan is for a buy and hold, what happens in that scenario? I know there are plenty of other important items as well, but at least these questions should point me in the right direction.

So @Wayne Brooks does the listing agent have any contact with the bank regarding the list price? At what point does the owner request the short sale? After a contract is on the house?

Thanks for the replys everyone!! I'm going to give Wordpress and weebly a try. I'm not tech savvy at all so if this works, then anyone can do it.

Does anyone have any advice on starting/ building a website? I want it to be an informative website that will help brand my business and capture leads at the same time. Any recommendations on a company or do it your self sites that can help get me started?