All Forum Posts by: Brendan Henry-Lambert

How does the draw process/schedule work when borrowing from a private lender (in as much detail as possible)?

Including:

1. After having the property inspected and appraised 

2. Closing on the purchase 

3. Draw scheduling/process (detail)

4. First draw

5. "Junk fees", unknowns, helpful tips/hints

Thanks BP!

Brendan

@Stephen Lee tell me about it, I deal with bad wholesalers almost everyday! Luckily there's a good amount of reputable wholesalers here in MD as well (you may know). How long have you been in the fix and flip game?

@Andrew Michael Thanks! No trouble, just curious :P

@Andrew Michael Thanks Andrew, I work for a reputable wholesaling company in Baltimore and have met plenty of wholesale business owners since I've been working here so I've built a good sized sellers list so far and i'll be looking to add more (also from calling local wholesalers and asking them to add us to their buyers list). I've figured the MLS wouldn't be the best source, but my partner and I have a great agent who specializes in investment properties and he will be sending us deals as well.

Rehabbers, what sources are most of your deals coming from; Wholesalers, the MLS, or foreclosure auctions?

@Ned Carey Awesome, thanks Ned!

@Shawn Clark Awesome, thanks Shawn. I figured that as long as the numbers make sense and homes are selling quickly, that having a strict "criteria" wouldn't be necessary (aside from at least a good understanding of where I DON'T want to buy and the cost of the project). I plan on incorporating a large fudge factor on my first project so I won't be putting myself (and more importantly my lender and contractor) at risk, even if it means a smaller profit i'd rather be safe than sorry! Thanks.

@Laura Alamery Thanks Laura, my partner and I are currently in the process of interviewing and searching for the right contractor now, we have several private and hard money lenders we've been in contact with but are yet to have any loan commitments (however they are very keen on working with us and have flexible terms that will work well for us). Luckily my partner has a strong relationship with several of the best realtors in Maryland that specialize in selling investment properties and i'm very confident we'll be able to sell quickly. But at this point i'm focusing my energy on choosing the best possible contractor (and it has not been easy!). 

Hey BP community! Experienced rehabbers, I am curious:

1) What is your criteria for a fix and flip project (such as age of the property, location, size/cost of the project, etc.)?

2) Why is this your criteria? Does this make it easier to identify and make offers on potential deals? 

3) How can I develop my own fix and flip criteria catered to my market (specifically Baltimore, MD)?

Thanks! Brendan. 

@Joshua Tobin Great advice, will do this week.