All Forum Posts by: Jason Eyerly

Definitely read J Scott's books! He goes very into detail about building a team and streamlining things to be as efficient and removed from every detail as possible. He recommends things like using the same paint and lights, etc. On each flip so nobody is calling to ask what lights to get from home Depot, they already know. Excellent read. I will be going through them a second time as I get much closer to starting my first flip. Flipping I think can be very lucrative for the time invested if done properly.

 So you just don't assist people who plan on using a hard money loan? Is your only option then to rent out the property or just carry the heavy payments for a year? 

Ideally I would like to sell the property, or at least exit the HML to avoid the high payments. However, I don't qualify through traditional credit and income requirements. So, do I have any other options if I can't rehab and sell within six months?

1.) How accurate do you feel my assessment of this deal is?

     I think you did an excellent job doing a broad overview of the financials.

2.) Do you agree with the exit strategy or do you feel there is a better option?
    I would personally try to capitalize on this deal myself if possible. However, assigning the contract out can be a very lucrative option.

3.) Did I miss anything that you feel is significant in my ability to analyze this deal?
    Without going into the specific legal requirements with what you can and can't do because of Dodd Frank I don't think you missed anything here.

4.) Interested? If yes, would you consider a JV?

    Definitely, and I would love to after digging deeper into the numbers and title. However, I can't take up this kind of deal at the moment. I'm sure that you could find somebody very willing.

5.) If this is the type of deal that you generally do but you aren't interested, why?

N/A

I'm surprised nobody has mentioned this already: Jump on it! If you can get it under contract as a good deal to another investor you can still make money. It's been said many times on BP, that even if you are not partnered up with big money, the money will find you if the deal is good!

Bump.

Hello BP,

I'm looking into using a HML for my first fix and flip since I don't have a lot of capital available. Ideally, I'd like to do a few of these flips in my hometown of Las Vegas or the New York Metro area, just to build up enough cash to purchase my first multi-family for cash flow. I've read a lot about these HMLs but haven't heard anybody talk about actually using them. I was wondering:

1. What is a popular exit strategy?
2. Is it possible to do a cash out refi after the rehab (assuming I have the credit for that) so that I can then hold the property as a cash flow?
3. Is the proof of funds letter from, say, dohardmoney.com enough to hand to a realtor for them to start helping me find properties and put in offers?
4. Every HML asks how much you have available. What am I expected to have in reserves?
5. What are the total expenses of getting the loan closed and obtaining title, approx.? Assuming your HML will wrap most of these costs up into the loan?

If anybody could clear up some/all of these for me, I'd be very grateful. I'd like to start looking for properties ASAP but want to be sure I have whatever capital may be required, and fully understand how the payments work, as well as viable exit strategies. All I have learned thus far is that payments are usually interest only after X amount of months if you are still holding the property. @Darren Sager  Any experience using these to obtain or fix and flip duplexes?

Edit: "You're not below the 70% ARV even *after* you put in the needs for repairs. Keep in mind that you should always over exaggerate repairs, especially if you haven't gone over the scope of work with any contractors and the property hasn't been inspected.

You're not below the 70% ARV even before you put in the needs for repairs. I personally would try to go lower in the $90-$95k range. However, if the repairs are as simple as you say, there are investors who pay slightly above 70% if they like the property enough and it has potential. However, this will likely reduce interest from a lot of buyers and you may need more time to close the contract.

I'll be there. Thanks for this, Darren!