All Forum Posts by: Cory J Anderson

@Regina Jones

I wouldn't say it is too big of a project, but the numbers seem a little tight depending how long it might take to complete the project.  If you are planning to flip it, I wouldn't say its the best deal.  Which is not something you want to have as your first experience.

If you are looking to refinance it when your done, recoup some cash and rent it out than the deal does look a little sweeter.  Just keep in mind some of the carrying costs when taking on projects you may be working on for a few months.  And as stated above, finding a legitimate and reputable contractor is key.  In fact, you should aim to have this team already built out before you start flipping not during the process.

Good luck Regina!

If you want to know if it is legal or not than this may be good question for an actually attorney, I suggest googling employment lawyers and call around.

As for alternative financing, it depends on what you plan on doing with the property.  If you plan to live in the property then you won't be able to go to a hard money lender, but you MAY still be able to find a private lender.  That has to do with regulations, most of these are high interest loans which are considered predatory lending when it comes to lending on a personal residence.

If you plan to acquire the property as an investment then hard money lenders & private lenders alike would possibly lend on it.  As long as its a solid deal and you have funds to close.  Most hard money lenders will want to see that you at least filed taxes, and if you didn't but have good reason they still may work with you.  You might have even better luck in that situation with a private lender.  Either way just be transparent with the lender.

@Jackson Tate

Are you a new investor or do you have experience?  And are you active in the local real estate community?  If you are having trouble with financing from institutional banks or even hard money lenders I suggest going to local networking events and trying to find a private lender that may be willing to lend the cash for a guaranteed return.  You may run in to a broker who "knows a guy".  It will be a challenge considering the very specific niche you are seeking but if the deal makes sense you should be able to find funding.

Meetup.com is one I recommend (no affiliation)

Hey Christopher,

I would have to agree with Jamaal and only slightly disagree with Nghi.   When dealing with 5+ I would make the argument it may even be easier to qualify for a loan.  As Jamaal eluded to, hard money is a short term solution for acquisition of distressed properties and quick closings.  But if you are looking to refi instead of sell as an exit strategy you will want to know who will be lending you the cash to take out the hard money lender.

When dealing with 1-4 units you will be most likely getting a personal (conventional) mortgage so good credit is a must for the most part.  They will also be looking at debt to income ratios, verifying income etc.  Where as with a 5+ unit they will be more concerned with the performance of the property and if it cash flows.  They will also look at your personal finances and credit but it will be more about the property itself.  Your best bet might be calling around to some local banks (portfolio lenders have flexible underwriting) and seeing what they will require to get a commercial loan on multi family properties. 

Personally, I couldn't agree more with the hard work.  Just commit and find a way to get it done.  And watching a DIY video to rehab your downstairs half bath is a great way to learn some carpentry skills.  However, when it comes to flipping a property time is money.   You will have carrying cost; taxes, insurance, loan payment if you borrow the money to name a few.  It isn't  a situation where you want to learn as you go.  

Knowing the ins and outs of real estate is ideal but I would recommend leveraging other people's specialities, ESPECIALLY when you are just starting.  And be sure to get a quote from multiple contractors.   Be weary of the super low bid, if it is too good to be true it usually is.