All Forum Posts by: Eugene Neal

Hi all! Just digging in to this forum and learning a lot.
Have recently started a renovation company with a friend, both of us successful business owners and talented in the trades. Also both enjoy freedom in our schedules. My question is, for a fix and flips, I'm considering financing the whole thing with a HELOC instead of hard money. I have 100% equity in a home valued at about 400k. Secure income from a thriving business as well. My partner is considering the same on his home, however, he still owes about 100k with 300k equity.

Is this a wise strategy? Is there another way I should be considering? Thanks for any and all advice!!

Thinking of using a HELOC to fund your rental property? Pros: Lower interest rates, flexible access to funds, and leverage without selling your home. Cons: Variable rates, risk to your home, and shorter repayment terms. But I agree you are able to reduce the cost via a HELOC. If you're looking to eventually scale then I would suggest a Hard Money Lender. Also all rehabilitation cost will be immediately out of pocket as well.

0 Votes

Portland, Maine

Quote from @Joshua Kavadi:

I am looking for 100% LTV .

I'll let you know now there isn't any lender that will lend out at 100% LTV. You are better off placing the property under contract and then wholesaling the property. Reach out and I can help guide you with the process.

0 Votes

Atlanta, Georgia

Quote from @Eddie Centeno:

Walder, It's been 3 years since you posted here about RFG. I found them on line and wondering how was your experience if you ussed them.

response would be appreciated

If you have questions about to process or what is required please feel free to reach out. I haven't heard of them but that doesn't mean they are not good nor exist.

0 Votes

Quote from @Jose Mejia:

Good afternoon,

My name is Jose Mejia and I am looking to find a lender that is able to do a cash out refinance for a property that I invested in with my brother through a hard moneylender. I would appreciate any and all help.

best regards,

Jose

This isn't too difficult to complete. There are other questions you need to answer in order to see if there are potential obstacles? Have you reviewed the credit scores or do you know roughly what the loan to value will be after the cash out? It may not be possible if your LTV is over 80%

0 Votes

Jersey City, New Jersey

Quote from @Timothy Frazier:

Is it a bad idea to use a hard money loan as a downpayment for a turnkey property? I have one in mind at Rent to Retirement.

It is extremely rare to find a hard money lender for the down payment. We will always require at minimum 10% of a down payment for a purchase. As stated previous neither lender would want to take the second position as well.

0 Votes

Augusta, Georgia

I too have never heard of any from that group. If the charge upfront run. If they give you a proof of funds letter without a full application and credit review burn it.

3 Votes

The biggest mistake is not truly understanding the exit strategy. I prefer to become a teammate rather than lender only.

1 Vote

Quote from @Caitlin Stables:

I would be the assignee and then rehab and flip it

I may have cash buyers within that area. If you need other potential options, please reach out.

0 Votes

Las Vegas, Nevada

Quote from @Caitlin Stables:

Quote from @Mary Ainsworth:

As a hard money lender specializing in fix and flip deals, I can offer some insights on choosing the best lender for newcomers to the fix and flip market:

1. Seek competitive rates and terms: Compare interest rates, loan-to-value (LTV) ratios, and loan terms among different lenders. For example, lenders like me offer Hard Money Direct offers loans up to 90% LTV with 12-month terms.

2. Evaluate the lender's reputation and experience: Choose lenders with a proven track record who have been in business for a while and have reviews/testimonials you can talk to if you like

3. Assess the application and approval process: Lenders with streamlined processes, like same-day approvals offered by California Hard Money Direct, can be advantageous for new flippers.

Remember, the "best" lender will depend on your specific circumstances, including your location, the property you're looking to flip, and your financial situation. It's always a good idea to speak with multiple lenders and compare their offerings before making a decision.

I DM'd you with my info in case you'd like to get a quote from me as well, we're pretty competitive :)

Hey, would love to connect! Looking to fund a deal ASAP! Have assignment contract ready to sign but need to lock up funding first. Thank you!

Are you looking to hold the property or sell the contract to an investor?

0 Votes

Las Vegas, Nevada

I'm looking to broker a loan for a client completing a 10 property development. We had to decline due to being deemed too rural.
16,000 lineal feet of existing frontage with utilities, septic and wells. Five wells are installed already. A total of 9 lots are cleared. Two of the pre sold houses have foundation currently being poured and the second one being poured next week.

The client has a score of 739. Please message me if you would like to discuss further.

0 Votes

Springfield, Massachusetts

All Forum Posts by: Eugene Neal

Eugene Neal has started 13 posts and replied 115 times.

Post: HELOC/HARD MONEY advice?

Post: Fix Flip in GA

Post: Has anybody worked with Rehab Financial Group? (Hard money)

Post: refinancing a property from hard money lender

Post: Hard Money Loan

Post: How are these lenders?

Post: What Are the Biggest Mistakes You’ve Made in Private Money Lending?

Post: Hard money lenders for newbies!

Post: Hard money lenders for newbies!

Post: Potential $3 Million Development Deal Rural Area