All Forum Posts by: Ethan Gidcumb

Hey Ben! From what I am hearing on different news stations, I do not expect rates to lower in the next 6 months. If that means that you should buy down the rate right now, then I would do that. 

I hope this helps!

Hey @Joe Homs! It'll be good to see some local faces. Let's create some time to connect.

Hey BP Community! I'm excited to go to BPCON to meet all of you and was wondering who else is going and would like to connect. Message me if you're interested!

Hey Rebecca! I would recommend to borrow as much as it makes sense for you. As you can see with the other lenders on this thread, depending on who you go with, you will be able to borrow a variety of amounts. For instance, for first-time borrowers, I usually lend around 75% towards the purchase price and then lend 100% of the rehab cost. I think it is important for you to analyze what scenario is going to be best and make the deal work. You could consider the LTV amounts, cost of closing, terms, etc.
For perspective, a lot of borrowers I talk to, aim to borrow as much as possible; but, whoever you work with, make sure they have your best interests in mind so you achieve your investment goals.
I hope this helps!

That's a cool idea @Ran Iarovich!

 Hey @Susan Tan! If you don't mind the extra expense and time, I don't think you could go wrong with getting an inspection done. As a lender, I always require an inspection of a property before funding, so I have a bias toward getting an inspection. However, I also saw some feedback you received from other members on why you could get away without it. I hope this helps! 

 Hey @Hannah Simpson, you actually have the option to get a pre-approval from both! Whether it's with a hard money lender, or with a bank. That being said, you have two different options when choosing a lender at this point.

On one hand, you have a bank that will provide a cheaper loan; although, the bank has more requirements and takes longer to lend on a property.

While on the other hand, you could go with a hard money lender who will be more expensive; but, you can get into a property faster and with fewer requirements. 

If you go the hard money route and plan to hold the property for a long time, you should refinance the property, once it is stabilized, into a better rate to put more cash back in your pocket. Hard money lenders such as myself have options for this; but, depending on your situation, you can usually get better rates with a bank. 

Let me know if I am unclear on anything I mentioned or can help further!

Hey Diana, welcome to Bigger Pockets!

Hey Hannah! As a hard money lender, this is how we could handle situations:

Provide a borrower with a pre-approval, just as Justin had mentioned. When you find a property that you are in contract on, or want to check how much the total loan will come out to; we will ask for the Purchase Price, Rehab amount (This can be a rough estimate but will eventually have to be consulted by a GC), After Repair Value, and Exit Strategy. 

After gathering some preliminary information about the property and yourself (such as FICO and experience), we are able to provide a quote! Assuming that the deal looks good and the quote checks all of your boxes, we will order an appraisal, collect documents, and start getting all other processes in order to close. 

As Riley had mentioned, getting a loan conventionally can take quite a while, which is why some investors prefer (or require) a hard money lender to help on the financing side. Hopefully, some insight on the process helps your understanding. It seems the area in which hard money could help you is in the qualification process since there are fewer, "checks", to get the ball rolling.

Some investors I talk to already have a favorite GC they decide to work with, so maybe, it would benefit you to find a GC that you'd like to work with so you can move faster in the earlier stages if you find yourself in a similar scenario.

Hey Veronica! I have seen builders insurance on fix and flips before