All Forum Posts by: Bryan Hartlen

@Grant Nash - if your goal is to refi 100% (leaving $0 invested in the property) you're going to have to find off market sources. In your example you're paying 89% of ARV (Price + rehab) before counting any holding costs. If your refi requires 30% down then your Price + REhab + Holding is going to have to be < 70% of ARV.

That said a successful BRRR does not require that you recoup the full 100% of your investment IF you have the ability to leave some funds in the deal. In your example above, leaving $21k investment in the property, would the rent rates for the market make it a good investment?

Those fees go to the Broker not the agent… in many cases it’s a fee that the office pays to the company itself (like a franchise fee).  While you can try to negotiate anything, I haven’t encountered any broker that’s been willing to reduce the fees.

Utility charge backs / RUBS

Assigned parking spot rentals (vs unassigned first come first served)

Vending machines

Pet fees

Common facilities reservations / rentals (eg party rooms, etc)

Laundry

Storage rentals

@Tim Kaminski Many selling costs are fixed (eg title search fee) while others will scale with the sale price (title insurance and realtor fees). Prorations (mostly for for taxes) will also vary from market to market. Depending on how accurate you want or need to be a % estimate may not work for you.  It will be much lower than 15%.  In our markets, it’s probably closer to 1 - 1.5% above any realtor fees.  Here are the costs we use for our market when modeling projects. If you need more precision, you can reach out to a local closing company for an estimate.  

Considering them for a hard money loan on a flip.  I've seen some less than favorable experiences posted 3 - 5 years ago.  Wondering if anyone has recent experience with them.  Thanks!

@Baahir Starkey, google hard money and you’ll come up with several large regional and national lenders.  Here in BP, there’s a “Find Lenders” resource that will put your opportunity in front of many smaller ones. Nationally we use Lima One,  although I would hesitate to recommend them. For us, their terms are almost always the best but, they’re almost always late to close, terms change right up to the day of closing, etc… 

When we flip we use hard money lenders and often use GAP funders to cover what the the HML doesn't. We have some HML's that are fine with us recording the GAP funders 2nd position DOT/mortgage. Lately, we've found a couple large national HML's that have good terms, very deep pockets but won't allow 2nd position loans. But, they're fine with funds coming from a JV.

I’m guessing that someone on BP has already solved this?  We’re looking for an option than not only allows us to use GAP funds with these HMLs but also provides the GAP funders with protections on their investments that would be similar to the recording of a 2nd position lien. 

And if you happen to know a lawyer that’s adept at crafting these types of structures and agreements?

Thanks in advance.

We have a bay-side waterfront property under contract in Panama City Beach. This is a new market for us. Our current insurer only writes policies for < $1M. ARV on this property will be in the $1.6M range. Anyone have a experience with insurers in this area and/or for this amount? I have an inquiry into NREIG. Thanks, Bryan.