All Forum Posts by: David Vincent

@Chris Mason Thank you Chris, that was helpful. One last thing. They also asked me to list out the all the repairs and debts I planning on spending the money on. To give you a little background, my house was valued at 280k. The appraiser came in and told me the house ended up appraising for 295k which increases my cash out. However, the bank does not know I know the house appraised for more. I am wondering if they are asking how much my repairs and debts are so they can limit the amount I take out of my home? FYI this is a Credit Union.Please advise and thank you in advance.

Thank you Chris, that was helpful.  One last thing. They also asked me to list out the all the repairs and debts I planning on spending the money on.  To give you a little background, my house was valued at 280k.  The appraiser came in and told me the house ended up appraising for 295k which increases my cash out. However, the bank does not know I know the house appraised for more. I am wondering if they are asking how much my repairs and debts are so they can limit the amount I take out of my home? FYI this is a Credit Union.Please advise and thank you in advance. 

I am in the process of refinancing (cash out) my personal home. I am almost done but the banks wants to know about my real estate business first.  I actually forgot to disclose that on the application. I buy and flip houses but the company has not actually made a profit yet. I am a minority share holder (10%). I do not want to write anything that hurts my chances or effect the refi.

How should I respond? Can someone help 

Hi everyone

I am new to real estate so please bare with me. I recently bought a house for 140k (sale price). My lender loaned me 172k which included 119k to purchase the property (I put 21k down) and 53k in renovations. My ARV was 315k (70%) but that soon change because my team and I decided to build a new construction due to foundation issues. We have been working on this property for a month now. Since we have this new plan, we need additional funds to finish the project. I was wondering how a lender would typically assess the numbers when requesting additional funds.

Now that you have an understanding of the old numbers, the new numbers looks like this:

Additional funds 40k

70% ARV 420k - 450k

My question is how will the lender assess the new numbers? Can someone break this down for me? Thanks in advance.

Hi everyone

I am new to real estate so please bare with me.  I recently bought a house for 140k (sale price).  My lender loaned me 172k which included 119k to purchase the property (I put 21k down) and 53k in renovations. My ARV was 315k (70%) but that soon change because my team and I decided to build a new construction due to foundation issues. We have been working on this property for a month now. Since we have this new plan, we need additional funds to finish the project. I was wondering how a lender would typically assess the numbers when requesting additional funds. 

Now that you have an understanding of the old numbers, the new numbers looks like this:

Additional funds 40k

70% ARV 420k - 450k

My question is how will the lender assess the new numbers? Can someone break this down for me?  Thanks in advance.

Thanks everyone for giving their input.  I got the 53,000 from a contractor I am no longer working with.  I had to take the project over.  The examples is exactly what I was looking for.  I just wanted to have a baseline to negotiate with subcontractors.  Please, if anyone else has examples please feel free. These examples budget should include labor and material.

I presently have a property that I am trying to flip. 4bd, 2 bath, 1,360 sqft, Purchase: 140,000, Reno Budget: 53,000.  The property is in need of foundation work which cost 14,200 off the top.  Can someone help me come up with an amount I should budget to each area of the property according to the rehab money I have available?  Right now, I am playing GC and I rather have a set "standard budget" to begin with before I meet with sub contractors. I just need a template.

Electrical:

Plumbing:

HVAC:

Siding:

Landscaping:

Kitchen:

Flooring:

Bathrooms:

Purchased my first property today. The deed did not get recorded but my team and I would like to start the demo. Is there any objections to this? Or would we be fine?

Well, I'm told 3 points is because this is my first flip. Another question, the 11% is that monthly interest or is that the percentage I pay when i pay off the loan (170,000 x .11= ? There are no prepayment penalty nor reserves. The loan is for 1 year. Hard money is very new to me because of everything that these lenders would like a borrower to bring to the table. I already deposited 7,250 down. Adding everything I'm brining 29,150. That's excluding closing cost and interest reserves. 

I need help. I have a deal under agreement for 140,000, renovations is 53,000 and the ARV is between 280k to 305k. Can someone help me understand what this lender is offering? What 11% mean?

$170,000 loan amount

$125,000 at closing(less interest reserve and closing costs) – balance as work is complete.

11% + 3 points (I may be able to get him to 2%)

Broker fee $3,500

Thank you