All Forum Posts by: Brian H.

Got it, thanks. Not yet, but on the list. 

@Frank Greg, I have a little cash in my business accounts (just none in personal) and can get more from my investors.

@John Warren, I'm in West Englewood. Curious about the local bank angle. They're really not gonna want to see my personal finances? 

Hi Heith,

Yes, it's a flip. Unless the market freaks out or something! Lol. Rental and Refi is a backup plan. I don't anticipate selling it will be too hard, especially if interest rates keep falling. 

Hi, I'm wondering if it's difficult to find hard money Rehab Loans. 
I was originally going to do hard money Fix n Flip, but ended up buying a property in cash from the local land bank just over a year ago. Now that I'm ready to get moving with construction, I realize that some of the hard money places do Fix n Flip only, but not the rehab. The property was vacant, so it's existing value is tops 50k, but it needs say 120k worth of construction. ARV should be 200k+. I have good credit, but not money in the bank (personally) which is why I was looking for hard money, not something based on my personal statement.
Any thoughts on where to look for a loan that will work without expectation that I still need to close? The last company said they'd consider it a refinance... sigh.

@Jonathan Taylor You we’re correct, that’s what I meant. I see now, the loan isn’t the issue from the lenders perspective (I just talked to my hard money guy).

@John Warren I was planning to do the rehab/acquisition loan in order to immediately refinance (well, as soon as I could with whatever required seasoning). I agree, it’d be better with more of my own capital. Just seems like a very good deal, fits my requirements/model, and would make the rent im already paying benefit me/my company as opposed to someone else. So, it’s very tempting to try and make work.

@Jonathan Taylor thanks, I knew there was something I was forgetting. What do you mean, by ‘clients have done multiple transactions under the same LLC?'

I have to do it under the LLC as that's where my funding is coming through. Which is why @Bob E. I can't buy it myself. If I could afford to do that I'd already have one 😁.

I realize a lot of folks have posted this question, but it seems they're all for SFH's or for tax benefits that I'm not concerned with currently.

I live in an apartment on the south side of Chicago (2 bed 1 bath) and the 2-flat (2 units of 2 bed, 1 bath) one house down from me just came up for sale at a good price. I know the area well, know who's around, etc. and am thinking if I can find a way to finance this through my existing LLC that I'm currently doing a rehab on a separate SFH down the street with, it might make a lot of sense. I would rent one unit to myself, and then rent out the other to a regular tenant. This way my rent would be going towards my LLC owning a property, instead of to the landlord owning theirs. Is there something I'm missing there or a reason that wouldn't work?
The challenge for me, I think would be the financing. I already have one project going and was planning to do hard money to finish the construction, so I'd need another loan to purchase this one. I think I may be able to raise the capital to cover the downpayment and holding costs, but could I get another loan? I had been thinking to get hard money to acquire and do light fix up (it's in decent shape), and then refinance after getting myself and another renter in to season for 6-12 months. Or I could just get a purchase hard money straight out and manage the small fixes myself. Am I stretching?

@Jonathan Klemm The property I'm looking at is currently vacant, and the city has a slew of requirements for vacant property. There's a Vacant Property Ordinance you can look up, here's some of the requirements: https://ipiweb.cityofchicago.o...

Additionally, there's just the security aspect of making sure it's safe for the neighborhood until construction starts (talk to a CPD vacant property officer - which some neighborhoods have - if you want to find out the terrible things that have happened in unsecured properties). Plus the actual security of the renovation once construction starts...

as discussed by @Mark Ainley. Thanks for the tips Mark. I don't care for the idea of guard dogs much, but still could be useful, especially at the beginning of the process as you mentioned. I'll DM you for the info, since people don't like posting the info in the forums (for some reason?). I agree, security will definitely be an issue, and it is just a frame house - hopefully no one comes through my sidewall! I do know the neighbor, who's active in the community and on the block, and have talked with her previously. I was planning to do Simplisafe and connect with neighbors, but (as she also mentioned last weekend) will probably have to do more than that. I was considering renting a 1/2 shipping container to keep on site for tool storage, though, obviously, folks still are looking for copper/appliances/etc. in the building itself. In one of my current jobs (I work part-time construction), having the tools inside has been troublesome for efficient work and trades scheduling as there's too much junk inside. I was thinking with an outside storage container, I could ensure both better security for tools and materials, and avoid the clutter inside.

Good morning @Bob Floss II, how's it going? Might you have any thoughts on this (or places to look for more info)? I think I'm finally gonna be getting started here, and thought it'd be cool to reconnect with you at some point.

Thanks @John Warren.

@Mark Ainley, thanks. How does that work, is it a service you hire? Do you then have to feed and lock up a dog every day? And maybe a bit expensive to to do for the duration of a project... (this is my first one, I'm anticipating 4-6 months) though I had been considering having someone stay in it. Didn't realize there was a service for that also.

I would still like to find out how much DAWGS would cost vs a regular board up, as I'm hoping to do more of this work and I'll have to do that, regardless, at some point as I acquire vacant buildings and have to wait for permits, funding, timing, etc.