All Forum Posts by: Ethan Gidcumb

Hey JP, If I'm understanding correctly, your current mortgage would be somewhere around $350k. With that in mind, I would determine your next step by finding what about the property is giving you the biggest headache.

For instance, if the fact that the property is not performing where it should be is the headache, maybe you should tap into the Conversion profit of $650k-$950k and renovate the property. This could be a good move because then you are also creating new connections with the team you'll have to hire and gaining experience in the rehab realm. However, there will likely be unforeseen issues and costs that always go along with some rehab projects, so by no means is this the easy path. 
Alternatively, if your headache is entirely just from having to think about the property, maybe it would be better to pocket the potential $350k profit from the sale and move on. You did mention that you need the cash anyway. You would save a lot of time and costs this way, but am giving up the potential for more profit.
I hope this helps!

Hey Victoria, alternative to a HELOC, you could also use a DSCR loan. DSCR loans qualify the property based on the income-to-expenses ratio. You could cash-out up to 75% LTV and use those funds for your next investment. When calculating the income-to-expenses ratio (also known as the DSCR), you would want to consider your: Rental Income, Principal and Interest Mortgage Payment, Cost of Taxes, Cost of Insurance, and Cost of Management fees. I hope this helps. Good luck with your investments!

Hey Nolan, I couldn't find recent information disagreeing with the information I included below. But, maybe this would be a good question for a real estate attorney in your area?

According to this article I found on Chicagoland Apartment Association, posted on October 2, 2019, "Nothing in the new law says that landlords are required to allow tenants or visitors to use cannabis or cannabis products on or in their property."

https://www.caapts.org/news/

Also, on July 15, 2021, Governor JB Pritzker signed HB 1443, amending Cannabis regulation. This article that outlines the Cannabis Regulation and Tax Act explains, "The Act applies the restrictions of the Smoke Free Illinois Act on smoking cannabis, and provides that property owners may prohibit the use of cannabis by any guest, lessee, customer or visitor. In addition, lessors may prohibit cultivation of cannabis by their lessees."
Adult-Use Cannabis Fact Sheet 

I hope this helps!

Hey Mashal, you could get a private/hard money loan for these types of investments. The first part of the process would be to determine what makes the deal worth investing in, for you. You will be able to find a lot of lenders offering similar and different rates so it's important to filter what you see compared to what you want. Typically, you'll see lenders offering fix and flip loans for inexperienced investors at 75% LTV towards the acquisition of a property, plus, 100% LTV towards the renovation budget. In my experience, borrowers get the cheapest deals at this leverage, or lower. However, if you are short on capital, you may be able to find somebody offering higher leverage. But I would be aware of paying any upfront fees and it could be a good idea to vet the company as high-leverage opportunities can be places for scammers to make quick money off of first-time investors.

Hey Josh, if your property is cash-flowing, I can possibly help you with this. I'll send you a private message with more information to see if we're a good fit for each other's business. 

Hey David! 

According to the article I linked below, some tips for finding dedicated contractors could be by going to local hardware stores, checking references, verifying licenses and insurance, etc. BiggerPockets has been something that many investors have shared with me as a useful tool for building a team. I would recommend searching through the different tools available on BiggerPockets and you could even use these forums to find local RE investor meetups. Utilizing meetups, you could get referrals and meet real people in your area. I hope this helps!

https://www.biggerpockets.com/blog/finding-contractor

Hey Wilber, for your first flip I would recommend getting a contractor, or even a general contractor if it's a big job, to walk the property. Some lenders even require multiple quotes. While that route could take longer, it would be smart for you to understand prices and the scale of work. You can go about finding a contractor by searching online or asking for referrals. I would advise asking the contractor for the email or phone number of other clients so you can vet the contractor by hearing how their past work went, as long as that's okay with everybody involved. I hope this helps!

Hey Zach, I'm not in the Wholesale Industry but, being a consumer, did you check the reviews, vet the company's success, or speak to other users to see how effective they truly are? Spending $3k/month with absolutely zero results sounds like something you should cancel. But then again, I'm not on the wholesaling side so take my opinion with a "grain of salt". 

Hey Jose, I think working with multiple brokers at one time is not a bad idea. Either way, you're only paying the broker that gets the deal closed. Although, by using a broker, you are paying more versus finding a direct lender. 
If you decide that you want to go directly to a lender, it shouldn't be hard to find one. You could make a post on BiggerPockets, call your local lenders, or even use social media. 

I hope this helps!

Hey Mark, for a DSCR refinance, if you have a good deal and good financials, I would expect 8.5-9.5% for an 80% refinance. For a hard money scenario, I would not expect more than 85% LTC for 10-12%. Hopefully this gives you some perspective on whats out there. Good luck with your investments!