All Forum Posts by: Craig Lick

Jaysen, the house is under construction right now and I need to refi into a traditional mortgage. Long story, but I lost a lot of money to a shady contractor and have been racking up personal debt to get the thing finished. It is almost done and I'm looking for a way to roll the high interest debt into the equity.

Any private lenders out there that can do something like this?

Chris, I really appreciate the time and advice. I have a real estate attorney, but I've never discussed the type of insurance that would cover losses from a renovation gone bad. I will check in to it right away.

Sadly I did have a payment plan, it was 20% upfront, 15% after completion of demo, 35% at completion of framing, and that totaled the 75K. I was strictly investing; the contractor was "turn key", he managed the project and the inspections. According to him everything was on track and going well. I found some structural issues with the house and checked on the permits, and they were never pulled. Hindsight is always 20/20, but that's how it got so far along. Live and you learn. All I can do now is move forward. 

Sorry Chris, not trying to be fishy or lack detail, just figured if someone is in the area and looking for a possible way to make money I would finish the conversation in person. I bought the house, 121 S Maple Ave, Royal Oak, MI, about four months ago. I had a licensed and insured contractor working on the property that was recommended by my real estate agent, and they collected about 75K in construction draw money. The work performed was non-permitted, when I found out I let them go immediately. I had a damage assessor out to the property and everything the contractor completed in regards to framing, electrical, and plumbing is a complete loss and needs to be redone. I have a new framing contractor putting the house back together now. My budget is going to get tight near the end of the project since I lost the original 75K. I am filing a lawsuit, but that's going to take a long time to get some, if any of the money back. I have no way to quickly replenish the construction draws, so I'm looking for someone to partner with to get this project behind me. 

I'm going to spare you the details, but I have a contractor horror story that has put me in a very tight financial position with a fixer upper I'm renovating in Royal Oak, MI. If there is anyone interested in making a great ROI, message me to discuss the details. Need 50K to finish.

Purchase: 255K, Reno: 125K, ARV: 450K

Matt,

Thanks, I agree with you. Permits need to come first, but the contractor will need to pull them for me.

I just fired my contractor due to lack of permits, unfinished work, and broken promises in Royal Oak, MI on a house that I'm flipping. I'm pursuing a lawsuit to return a large sum of money I've pre-paid, but that is going to take months or years to get back. I won't get into any more details, or name names, but I need some help urgently!

Does anyone have any recommendations for a great contractor that can manage whole house projects? I need a crew that is available immediately and potentially one that will work for a profit split at the time of sale. 

Does a commercial apartment mortgage for a LLC need to be reported on a 1003 when applying for a personal home loan if the commercial loan does not have a personal guarantee?

All,

I'm trying to find jumbo financing for a very complex transaction and I'm reaching out to see if someone may be able give me advice.

1. The property in MI is up for sale at $650,000. I do plan to be owner occupied as I love the property.

2. The property needs some TLC, mostly paint, landscaping, bathroom upgrades, and kitchen modernization, estimated around 150K.

3. The price per square ft is about $120.00.

4. Upgraded houses in the area are selling in the $200.00 - $250.00 price per square foot. with the right upgrades, the property could be worth 1.3-1.5 million.

5. I only have enough cash for a 5% down payment.

6. I'm okay with a piggyback loan to support the remaining down payment (80-15-5).

7. I have a large amount of school debt and renovation debt (flood) from an apartment complex I'm buying on land contract. Total combined amount around $370,000.

8. My credit score will be above 750 by mid February. (I just sold an investment property and paid off a large amount of renovation debt from the apartment complex).

9. My wife and I, with our jobs and the income from the apartment complex, gross around 20K a month.

10. My goal is to combine the house purchase, the renovation costs, and my current debt.

Is something like this possible?

Regards,

Craig