All Forum Posts by: David Taylor

Hey guys, thanks for the reply and feedback.  This certainly helps alot.  The example was generic numbers I was throwing out so you may understand my question.  It isn't a deal in particular I was pursuing.  

However, your responses did answer another question about keeping that loan to cost percent down close to that 70% mark as well.

Thanks again for clarifying this for me.

Good morning all, 

I am trying to better understand what we should be basing our numbers on to determine down payment needed for a project using hard money? Example: If we have have a property that has a purchase price of $100,000 that needs $60,000 worth of work, which has an ARV of $200,000. Should we be basing our numbers on: LTV (70% = $140,000) or LTC (88% = $160,000)

1) What are lenders basing our down payment on?

2) What should investors base their numbers on?

How much would the down payment be in this scenario?  I appreciate the help.

Dave

@ Stephanie P. 

That does help. Thank you very much for your guidance on that.

Thanks Matt. I have a couple of lenders that can do the LTV of 80% but we have to wait till 6 months to do the refi. I'll check them out.

Good evening,

For those that might be using the BRRRR method, what financial institution are using to do your cash-out refi (preferably Atlanta)?

We have a property we purchased in June using a hard money lender.  Most lenders are telling me I have to own the property at least 6 months before I can refi (January).

I am looking for that lender that can refi inside that 6 month period and can do a LTV of 80%. Who do you have?

Thanks for your help.

Thanks Ned.  I do have collateral.  Do you have any companies that you recommend?

What reliable, low cost companies are people using for business lines of credit?  I have been looking at fund and grow but they prefer an upfront fee.  Anything cheaper than them and possibly around the Atlanta area?

Hi Heath,

That's a pretty good strategy.  I was concerned myself about the cash flow after refi also.  I was actually referring to the business lines of credit though.  The fund and grow company. (https://www.fundandgrow.com)

What's your thoughts on that?

I just completed my first deal of renovating and renting my first property.  I have a question of which method I should pursue in getting more properties.  I have been doing a lot of reading about different companies doing business lines of credit, which charge 3-4k to start.  I also have a good amount of equity in our first rental.   

My question is, which method would you take?  Business line of credit or a cash out refi and extend another few thousand over the next 30 years?  And why?

David

Good Afternoon,

I am working with some clients that are in the process of buying a home to fix and live in.  They will be using a 203k loan for the rehab.  They also, as well as myself, looking to purchase homes to rehab and rent or even flip.  Could anyone recommend a good contractor that can not only do the work but can provide recommendations for new investors?

I appreciate the help.