All Forum Posts by: Account Closed

Welcome @Terry Whitaker . I'm located in Charlotte but do a lot of business in Wilmington/Jacksonville. Please feel free to reach out if you'd ever like to discuss anything on the financing or lending side for your investment.

Yes, you'll likely have to use a private or hard money lender for this project because a conventional lender or local bank will not fund the purchase of a distressed property. After the property has been rehabed, you can seek refinancing from a local bank. Keep in mind to have it re-fi'd, you'll need to qualify i.e. fit the bank's criteria for credit score, debt to income ratio, etc. The bank may also want to see the property is stabilized, meaning you can document rent from and cash flow for the 2 units for a certain period of time. 

To go the private/hard money route, keep in mind those lenders will likely require you to bring some amount of the purchase price to the closing table so you'll have skin in the game. From my lending experience, this has been around 10-25% of the purchase price depending on the property and the borrower's level of experience. Then they may or may not fund the rehab portion of the project depending on what the property's ARV (after repair value) is.

Good luck!

@Chris Harjes , I funded a fix and flip in West Asheville last week. We really like the area despite the concerns you mentioned. From a risk perspective, I like the investment given the numbers you've shared with us, but there is obviously a lot to consider here. If it'd be helpful, I can connect you with a very nice and seasoned investor in the area who I'm sure would be happy to give you a second opinion on the property. 

@Jeff S. , that was an incredibly helpful and insightful response and I sincerely appreciate the time you invested here. 

Bump?

Thanks @Curt Warner spoke with Zac today he was great.

Any advice or insight on the below is much appreciated!

1) What separates your preferred lender or source of funds from the competition? i.e. what makes them the best option for your client and what are your expectations in terms of service, process, etc.

2) BiggerPockets and local REIAs are great places to find clients. What other creative ways or platforms do you use to source new clients in need of funding for their investments?

Thanks!

I'm looking for a competent attorney that is very well-versed in 1031 Exchanges, estate planning, and complex capital structures for a multi-million dollar transaction in North Carolina. If there's anyone you can recommend, please provide me their contact information ASAP as this is very time sensitive. 

Thanks!

There seems to be a lot of ambiguity surrounding the self-promotion rule and when it justifies the removal of a post. Some clarification by moderators would be greatly appreciated.

E.g. I recently had a post removed looking to network with local fix and flip investors simply due to the mention of my current capacity as a private money lender (without any promotion whatsoever) merely because the post "may arise in deal making". If a similar standard were applied throughout the forum, you can imagine the number of posts that would be flagged.

In a similar situation, I had a post-reply flagged because I included the phrase "I lend in XYZ area" merely as a justification to my own credibility, and not as a promotion.

It's painful to have a post or reply with good content that's voted on flagged due to the inclusion of only a small phrase that may contradict forum guidelines, and I believe an alert to edit the post-reply before it's removed (or at least to provide the author the post's original content) would be a huge addition to the forums. 

It seems like the majority of the time post removal is merely open to the interpretation of the individual moderator (with regards to the self-promotion rule) vs any well-defined guideline or rule of thumb.

Thanks

I have not (nor do I lend in Illinois), but it's best practice to contact multiple lenders and collect as many data points as possible to ensure you're getting the most favorable terms. Try reaching out to the Illinois HMLs advertised in the BP marketplace. You'll be surprised how competitive lenders can be when they know there's competition involved. Good Luck!