All Forum Posts by: Chris P.

I believe current max LTV on an investment property cashout refinance for a duplex is 80% but want to confirm. If so who are some of the lenders that provide loans up to this LTV? Is there perhaps anyone that goes aboves 80%? Thanks

@Tom Pritchett  Here is where I look at it a bit differently than going to a hard money lender.  With a hard money lender you are paying 12-15% interest monthly and are then on the hook to fully repay the entire loan anywhere from 3-12 months.  If the project goes south for any reason that leaves you in a very bad way.  This program does not appear to be a loan in anyway in which your liable but allows you to be part of a flip with little skin in the game and still collect 50% of the profits.  Seems like a pretty good hedge then going at it alone, and if you have limited capital. 

@Claudia Fernandez you find the project, if it meets certain requirements, they'll fund 90% of it. The goal is to fix and flip in 120 days. For a 10% investment you could stand to make a nice ROI with the right project. I'd be curious to look over their contract though cause if the property is under their control after purchase they could do what they want with it.

Austin, I've seen this as well.  What is your opinion of the program as presented?

My guess is looking to grow their business into new locations nationwide through these types of partnerships.  I don't believe they would work with a new wet behind the ears investor but investors that have experience but just lack the capital for a specific project. 

So the program seems pretty simple to me especially for someone starting out with not much capital that would allow them to be part of a flip. Yes I know there are hard money lenders but this does not appear to be a loan and would allow you to hedge the risk with little money down with an experienced real estate company. Seems like a win/win to me and I'm curious as to what other people thing about this route.

• Gorilla Capital provides 90% of acquisition and remodel costs
• Fix & flip operator provides remaining 10% of acquisition and remodel costs
• Gorilla Capital charges a monthly 1% management fee for capital in use
• Fix & flip operator earns 12% per annum on their capital in use
• Remaining net profit is split 50/50 upon closing

So the program seems pretty simple to me especially for someone starting out with not much capital that would allow them to be part of a flip.  Yes I know there are hard money lenders but this does not appear to be a loan and would allow you to hedge the risk with little mone down with an experienced real estate company.  Seems like a win/win to me and I'm curious as to what other people thing about this route.   

• Gorilla Capital provides 90% of acquisition and remodel costs
• Fix & flip operator provides remaining 10% of acquisition and remodel costs
• Gorilla Capital charges a monthly 1% management fee for capital in use
• Fix & flip operator earns 12% per annum on their capital in use
• Remaining net profit is split 50/50 upon closing