All Forum Posts by: Bill J Fay

100% financing is hard to come by in this market. Max leverage most lender's offer will be 85-90%. 

Check out BP's suggested HML's in your area here:

Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com)

Sounds like you are in a great spot to be! The beauty of finding properties that need forced appreciation means you decide if you want to cash out on the sale, or rent and refinance to stabilize your cash flowing asset. You can always try to sell for your price, if it doesn't work out, refinance and rent.

Most Hard Money Lender's will lend to new investors as long as the deal makes sense. You'll have to put a tad more money into the deal or have them control 100% of the renovation, but don't let that stop you from reaching out to get financing. BP has a suggested lender's page on the "Build your Team" tab above. 

As others have suggested, a HELOC would be a great option since your property is paid off. Most HMLs have minimum loan amount they require. 30-40k may fall below since you don't need financing on the purchase. I would call a few and explain your situation. BP has a list of recommended lenders: Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com). 

Have you thought about working for a company? There are numerous RE companies in LA that you could learn on someone else's dollar. If you are looking to invest right away, join some meet up groups and provide value to experienced investors. Network and bring them deals. You may be able to eventually partner with someone that is looking for a young go-getter. Good luck!

Structure your contract so it incentivizes productivity. Pay your contractors for their service, not their time. Paying by time can eat at your pocket quickly. Pay your contractors extra for getting the project done early AFTER you go and check. Long distance deals are ok if you have experience. But like others have suggested, it really depends on your team. 

It is state dependent. There are Judicial and non-judicial states, as well as states that allow both. Judicial means the foreclosure is processed through the court systems with a Judge. Since it's a tad more complex, it is easier to get a delay. Non-judicial means the lender can foreclose, which is an easier process but harder to delay. Do you have a RE lawyer? They will be able to help in either case.

I would ask your conventional bank what the process is to secure a fix and flip loan with them. Using a hard money lender will allow you faster speed, higher leverage, and greater flexibility in your loan. BP has a great list of HML's that you can chat with and compare your conventional loan with.

Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com)

Curious to what the rest of the bathroom looks like. Those jetted tubs are usually a selling feature, unless you are missing the shower completely. What's on each side of the tub? What do comps in your area look like? The tile around the tub looks like it needs attention either way. If there is no shower, I'd replace it with one. You can make a nice walk in with the space. 

Like Andy said, having the construction background is huge. The set back you will run into is having enough reserved cash to get started, especially in one of the most expensive markets in the country. Lenders will want to see you have the cash reserves to get through your project, and credit cards won't suffice. Finding a partner could be a great way to get your 1st deal under your belt. I recommend going to a REI meet up to start building relationships with other investors in the area.