All Forum Posts by: Bill J Fay

If you are to go this route, here are some of the best 0% APR business credit cards. You need to make sure you are still paying the minimum balance each month.

https://www.nerdwallet.com/best/small-business/zero-percent-...

There are still some risk to 0% APR cards though. Read here: https://www.nerdwallet.com/article/credit-cards/facts-about-....

Agents are in tune with your market. With that being said, some agents are very traditional and only really work with owners that are buying/selling their primary home. There are other Agents that are focused on the investment side of real estate. These are the Agents that you want to get to know as an investor. They will come to you when they get word of a property that needs love. They are paid when these properties are bought and sold, and you are a critical part of this transaction. Find Investor Friendly Agents here on BP.

Find the best Hard Money Lenders here. If you are a 1st time investor, most HMLers will want to see you live driving distance to the project and that the property is newer than 1940s. 

If you are not satisfied with the work, definitely keep trying out new crews. Ask to see current projects and ask for references. 

Project managers usually work with the GC to help coordinate the project. If permits are needed, you must check to see if you can pull them as the homeowner or need a General Contractor to do so. A GC will be very helpful if you are just getting started, especially if you are out of state. 

Sounds like you have taken a good first step in house hacking your primary. When did you purchase your property? Depending on the equity, you can refinance and pull cash out and house hack again. It really depends on what you are looking for in your next purchase. Hard Money Lenders will be able to offer you 80% LTC (purchase + renovation), so you would have to come to the table with 20% on a flip or fix/hold. Depends on if you want to owner occupy the next one or use it strictly as an investment.

Are you asking how to calculate holding costs on a renovation? If you work with Hard Money Lenders, they will loan off the Loan to Cost, usually 80% if you are 1st time investor. Example, $100k purchase, $50k renovation, $250k ARV. Your cost basis would be $150k, 80% of that would be $120k loan amount. $120k x 11%/12 = $1,100/month in interest. Rough example, you will have other costs but this is an easy way to calculate your majority holding costs.

If they are providing value you can pay them as a project manager. Either a flat fee or a % of profit. This should be only if they are providing value, not just popping in and reporting back to you. Even though they are family, I recommend you treat them as business partner in this scenario. 

I would check your comps. Are comps at your projected ARV selling with a washer/dryer in place with cabinets? Most flips in my market do not include W/D, but make sure the plumbing is updated. Really depends on your market and what your comps are selling with.

Good rule of thumb is at least 50k in metro population. With your track record and if there are solid comps, most HMLs should give your area a look.