All Forum Posts by: Charlie DiLisio

I am looking for advice about financing my flips. I have two going on now and I have the cash and lenders for both including the flip money. I am looking at a possible tri-plex that I found (off market) and I am looking for options to finance it. I do have a few private investors who may want to JV on them but I am wondering if it is feasible to get a HELOC on the property I am living in. I have never had one before and I may be able to get 100% from Navy Federal credit union. I only need about 25 for the triplex but not sure how the process works for the rest of my equity. I have the equity but wonder how it will affect my credit score or other things to be wary of. Trying to avoid HML to lower the cost of the acquisition. I don't usually buy and hold but this one is almost next door to me. I appreciate any guidance. Thanks!

It is not necessarily difficult depending on your location.  I am originally from Connecticut and it is a disaster there because of the the terrain and the shale and stone in the earth. Also the problem with drainage and water problems with the different seasons.   I live in Florida now and it is not difficult at all for the opposite reason.  I agree with J Beard to get with an engineer to check out the conditions where the lot is located.  Good luck and hope for the best.  

Yes you should know the proper ways to install building components.  They have free videos online to view and at least you will learn the process.  Too many contractors take advantage and install substandard materials to make more money on the job.  It is the few bad apples but you don't want to be the victim.  As a contractor myself I have fixed many jobs that were poorly installed or the so-called contractor left the job.  Check for current licenses and insurance to protect yourself.  Don't take someones word for things as you will ultimately be responsible for the project.  Good luck.

Working on Saturday again.  I hope one day I will get there.  Enjoy and be abundant.

They have the angle cuts but the ends will have to be cut off and the cut end gets a matching strip that glues on the ends.  Basic cuts with a circular saw.  I use a jig saw to cut out for the sink.  Good luck.  

Home Depot sells just the vanity tops for the bathroom at a reasonable price also and they have nice formica tops for the kitchen counters pre-made and you can save some money by taking the old one off and just have it installed.  Easily done in one day.  

Sounds to me that you would be better to buy it and tear it down. Way too much work for an ARV of 105k. You will most likely have to have mold remediation, complete electrical, major plumbing and drywall replacement, etc. Just my two cents. Way better deals than that around with much less risk for a small if any reward. Good luck with whatever you decide.

Search on bigger pockets on the mechanics of lease/option contracts, subject to's and owner finance.  They have a wealth of information on it and it has worked very well for me.  I avoid the banks whenever possible because of the costs but I am always up front with the sellers so there is no conflict.  

If the property is empty you would sign them up to a lease/option contract to purchase the property for a period of time.  I would try to get at least a one year term but to sell the house after you re-hab it should take at most 6 months.  Be up front with the seller that you will be marketing the property to sell it or buy it yourself depending on your situation.  You will have control of the property and in your contract you will have a set price to purchase it.  You make a firm purchase price to buy the property for a set amount of time for a set price.  While you have the home you must make monthly payments to the owner and they can be applied to the purchase or whatever you can negotiate with them.  Lets say you set the purchase at 100,000.  You can upgrade the home and sell the house to someone else for 140,000.  If you double close you own the home for maybe a day or an hour and sell it to the new buyer.  There are many ways to do it depending on the needs of the seller.  I always try to make it a win-win situation and not take advantage of the seller.  To protect yourself you can record the option contract at the courthouse so the seller cannot sell to someone else at the same time.  There are several ways to do creative financing in the playbook but you must exercise due diligence to protect yourself in the event there are liens on the property, etc.  Most title companies will do a search for you for a small amount of money.  Research, research, research.  

I think i would wait abit to see what developes there.  I would assume there will be many bargains on the market but can you hold them until the market comes back.  Buy and hold before you can flip them to keep your funds from being drained off or risk going down with the ship.  I would opt for lease options or subject to financing versus taking out mortgages.  Just a thought.  I wish u great success.