All Forum Posts by: Olga Kostrova

Hi guys, how do you structure a financing offer for a private lender/investor to make it attractive for them to take the 2nd position for a fix and hold property?

Let's say, I want to offer equity to a lender but would like to share income from the property sale (in let's say 10 years or at any market pick period so we all take advantage of appreciation), but not share a portion of mid-term rental income, so I can use cash flow for other deals acquisition (marketing etc.) - for deals in which they too can participate.

Can this deal structure be attractive to a lender/partner investor, if I give them higher equity in the property?

Let's say I buy properties at an average $300K ARV that will appreciate over 10 years to be valued at $___ (? hard to predict, so blank). I finance with hard money (let's say it's $200K-ish, including purchase price, rehab and closing cost), and a lender/investor takes a 2nd position by investing $80K. They don't participate in income distribution, but get ___% of the sale of the property. Basically for them it's more of an asset acquisition than cash flow (in a similar fashion to how we invest in tech start-ups - to see ROI when the company exists without relying on income distributions)…

So, what % would be fair for them and yet make financial sense for both, considering that hard money interest is paid over the years?

And what the clause in our contract would sound like to clearly articulate the agreement and minimize risks for all parties? (and yes, the lawyer would look at the final document, but I would love to hear your opinions :-) ).

Do you know anyone who would finance such deals in Virginia?

Thank you, guys...

I looked at roofstock earlier.. Limited inventory, close to market / retail prices... No wins there, it seems...

Hi guys, are there any resources to find properties that were rehabbed by investors and are available for sale, but not via MLS?

Thank you very much, Mitch Davidson, Andrew Garcia, Tiamo Wright.  YES!   :-)

Thank you, @Nate Slappey.  Will see...

Hi guys, 

I a m looking for an investor friendly buyer side real esatte agent that would put 10 offers on properties I've just located TODAY, but I would like to find someone who has a license to work in the entire state of Virginia and North Carolina.

So, what would be the best way for me to find someone with a license in both states AND is experienced working with investors?  Are there any directories that allow filters, as zI am short on time to call everyone from yellow pages to find out.

Yes, it's a bit last minute but I was planning to work wit someone, but he admitted he doesn't really work with the type of deals (fixer-uppers), which I pursue in volume.

Any suggestions for the best way to find a patient and proactive partner in this?

Makes sense, Evan Polask.  What % of cost per sf do you think one would need to add to regular flips' metrics to derive to the pop top reno budget?

Guys, how do I estimate (well, actually verify my estimates) for the square footage of a fixer upper? Especially if it's a virtual wholesaling. 

I looked at similar properties in the neighborhood, but from photos it's hard to judge.

I cannot find data on any MLS services. It says zero. And neither seller not agent seem to know either.

Thank you, Andrew Garcia...

Hi guys,

I had just had a conversation with a local lender. Not the lowest rates but I enjoyed the team I've met so far.

They agreed to fund 100% of both purchase price and rehab costs for a fix and hold (rent) deal, but since it's our fist deal with them they want to put my other property (that I own free and clear) as a collateral.

My question is, how would it look like?

Let's say market value of the home I own in Virginia is $250K.

Let's say, the property I buy for rental is $220K purchase price including closing costs, $60K rehab, $300K ARV.

So, let's say the are giving me a short term loan of $280K that after rehab i would refinance (70%). Then the only portion of my property I should collateralize is $30K, right?  Not sure how it's done, but it definitely wouldn't make sense for me to put the entire property as collateral, as the total value of 2 properties greatly accedes the amount of the loan.

What is the reasonable way to structure it that is fair to me and yet gives a lender a peace of mind?

Would refinancing my own property (70%) and put it as a downpayment be a better decisions for me, financially? The problem with this, I can't really leverage and scale, as I only have 1 (well, the 2nd is in Europe, so that wouldn't count). And after 1 deal is complete the lender then doesn't need my property as a collateral and can land 100% on all future deals as they gain comfort in working together.

And if I do put property as collateral, what are my risks and how to avoid them?

Thank you...