All Forum Posts by: Charlie DiLisio

Thanks for the reply J.  I have done many re-habs part time in the past and well versed in the structure.  I am transitioning to full time and building a great team.  Looking to capitalize on the re-hab market here in south Florida and I'm all in with skin in the game and finance all of the re-hab and usually put in 20% down on my deals.  Currently working on two at the moment and enjoy the business.  I'm always open to new ventures and my work speaks for itself.  A point or two is reasonable as well so I appreciate your input greatly.  The opportunity is now and making things happen is very empowering.  Much success to you and the BP community.    

I'm not sure but I believe she can quit claim the property to you and take over the payments until you decide to to re-fi after you do the re-hab. Contract for deed may work as well and I personally have never seen a due on sale clause executed as long as the payments are on time. I would definitely check with a real estate attorney in your area who works with the local REIA group. You can also just do a lease option with the price being what you agree upon, re-hab it and sell it with a double closing using transactional funding. It sounds like a win-win deal for you both depending on your relationship.

@Boris Grin I understand the pricing structure for HML and don't blame them for the extra costs. I was just wondering why it wouldn't be attractive enough for a private lender since the rates are so low on most investments these days. $500 a month interest only for 6 months would be considerably more than they would make in traditional investments but finding private individuals is challenging but it is a win-win situation when it is fully secured by real estate worth double their investment. I have no problem with HML's but business is business and the bottom line is what matters. Thank you for your input Boris.

Interesting post.  I am looking for a private individual to finance a flip and offering 12% interest only for $50,000 for about 6 months max.  The paid for property will be used to secure the loan and it will be worth between 120 and 140k.   I'm using my own money to do the re-hab and have skin in the game.  Does this sound reasonable and what kind of paperwork would be required?  I am approved by a hard money lender already but the rates are higher and fees are a bit pricey.  I have spoken to a few lenders and most consider the loan too small for them.  I would have thought the opposite since its such a small risk.  Any thoughts?

Been doing bathrooms and kitchen re-models for many years and I specialize in tile work.  I have my plumber, electrician that I work with and co-ordinate with them.  My clients had to deal with just myself and I always guaranteed the job.  It's not easy dealing with different trades schedules and workmanship unless you know their work and experience.  

Awesome you found that Well City Bank with those great terms.  I assume they let you borrow on the strength of the property.   Of course having such good jobs helps also and thank you for your service.  Great job on the creative financing of all the components of the deal.  I love creative finance and make it work however it can.  I will be following this feed and interested in the numbers as well.  Thanks for sharing.  

Life is like a box of chocolates, you never know what you are going to get.  I have found that by using my cabinet installer and shopping for all wood cabinets it works out much better for me price wise and otherwise.  I also use crown moulding in my kitchens and baths and everything at home depot is an extra.  My guy just puts them in automatically and also gets my moulding and base much cheaper by the foot from our local "Smith & DeShields distributor (millwork).  Just a thought but of course you have to have a great mechanic and willing to do what it takes in your best interest.  I don't like dealing with multiple contractors even though Home Depot guarantees your satisfaction I don't want the hassle of having things fixed.  

Just as another idea for you.  I have been in the bathroom and kitchen remodeling business for many years until I started doing re-habs for myself.  I have always used two different plumbing contractors and the same electrical contractor.  I save tons of money by doing all of the demo work for them and assist as they are doing their thing.  I cut the concrete out, move and bore studs, etc.  I am flexible with their schedule and when I call them in at their convenience they know all is ready to go and I even clean up for them.  I have a small team who does my carpentry, tile floors and I do the bathrooms and kitchens.  I use small contractors who like my method because they can work around my schedule and they know they are in an out quickly with no obstructions in their way.  I always deal with the same people also so we have a good relationship instead of different tradesmen coming in.  Most of the time when I have a project they scope it out and tell me what they want done before they get there.  All the best to you in your venture.

Turn key ready to move into is the best in my opinion.   Too many ways it can go sideways.  I always use neutral colors and most owners will change it after they are in it awhile.  I think you are asking them to low ball the offer or use it as leverage against you to add things to their liking.  Just my 2 cents.  Good luck and have a prosperous year!

I would also check with the building department to make sure the re-hab doesn't have any violations on the property which you would inherit.  eeaeasy to check on by being discrete.  good luck!