All Forum Posts by: Faiz Kanash

Hey everyone, sorry ahead of time if this isn't the correct place to post this.

I was wondering if someone could toss advice as to how I can find wholesalers in my area? I do fix & flip projects, and it'd be nice to tap into whatever wholesalers have available. I primarily work in dupage and cook county, IL, typically only suburban areas. I wasn't sure where to start looking, I've tried finding facebook groups but i couldn't really find anything for just IL specifically. And when googling, there's a lot of websites that just scream 'scam'. Could someone toss me advice, referrals, or any website/group they're familiar with that I can join in? Thank you!

This is an odd question, lemme try and break it down.

I'm working on a flip right now, and typically always replace the doors with new ones. Previous flips, I've went with the mission style interior doors (3 panel door) that were hollow since they were pretty cheap, about $140 a door(prehung) and looked nice. However, this current flip I'm working on is expected to be my strongest, will sell in the 700's hopefully. I came to the realization that since this house is gonna be pricey, should the doors be of a different style or higher quality (Solid wood instead of hollow)? Or, as long as the doors are new, it doesn't matter whether or not its a hollow or solid door, value won't really change? The other style doors like a 5 panel equal or 3 panel equal come out to be about $240prehung per door and are solid wood, so I'd be looking at a $2000 difference overall. Is it worth it or does it not really matter?

I've attached an imgur (will delete if not allowed) that shows 4 style of doors that I'm considering for the project, as well as interior shots of the general style I work with for my flips, if anyone would like to give their 2 cents i'd appreciate it.

https://imgur.com/a/FXzHOxH

Quote from @Patricia Steiner:

A business credit line requires business income that can service the monthly debt - and without that, as you have found, you're not qualified for that product (for now).  Your five credit cards may hurt you obtaining unsecured credit lines. For example: your credit-utilization ratio. That's the amount of available credit compared to what you owe. If one of your credit cards has a $10,000 limit and you only owe $500, you have $9,500 in credit available to you that you’re not using. Lenders like that; but if you owe $9,500 on that same credit card account, you have a poor credit-utilization ratio and it will lower your credit score and your chances for other credit including a mortgage.  I recommend that you set aside a portion of your net income per project as a liquidity contribution if you will to start building your wealth and liquidity.  You may want to consider an equity line of credit to pay off some of those credit cards; that would provide you with lower interest rates and funds that you can withdraw from the line for cash and other purchases.  Having said that, the unsecured credit used for a specific project should be paid off at project end, right? 

The bigger issue here may just be that you're working hard, you're paying the bills, but you're not building wealth. It's a different strategy based on not just getting by but building a surplus and creating wealth.

Hope this helps...

I appreciate the advice! To add more info about my debt, i rarely use up more than 50% of my available credit on my card. So if i have a 10k credit card, i usually only use up like 5k of that, but that debt usually gets paid off in full by the end of the month.  When it comes to my personal wealth, i do have a lot of cash liquidity and have a very low DTI. The reason I'm looking for a personal line of credit is so i can use less of my own personal funds for projects, and to build my business as well as my wealth at the same time. Im very good at preventing myself from being overleveraged so it'd be more beneficial for me to have an unsecured line of credit. 

Hey guys! Im looking for advice here.

I've been looking into trying to open up an unsecured line of credit, mostly through my business. The issue is i've been mostly getting denied simply because of the fact that my business doesn't produce monthly revenue, since I'm primarily a fix & flipper. My revenue is based off project completion, which is usually every 3-4 months before a major deposit happens. So, my first question is if anyone is aware of a lender that provides an unsecured line of credit for a situation like that?

My second question is, since i'm almost certain at this point I won't get approved for a business line of credit, would it be better for me to just open a personal line of credit instead, and if anyone had any recommendations for a company to open one with? My credit is solid, about 750+ with 100% payment history. My current credit card line(about 5 credit cards) totals out almost 60k. The main reason i'm looking for an unsecured line of credit is to meet unexpected business needs of needing to pay cash. For example, I can't pay my contractors through a credit card, they need to get paid cash. A personal line of credit that allows me to draw out cash can help me tremendously, especially since I can most likely pay off the debt immediately after I sell the home, as well as this would help me exponentially expand the business. I can't use cash advances off my credit cards since they're way too low and charge absurd fees.

All advice is welcomed, thank you!

I should also mention im looking for a bridge loan, don't need rehab funds unless im required to have it since im a noobie. Also looking in IL

Hey guys,  just looking for a lender recommendation. I just finished my first flip recently and now got it under contract in just a couple of days of listing. Everything is going great, and ive already found the next property to flip that would be a bigger deal than my previous. However, my current house isnt going to close for maybe another 2 weeks, so I'm strapped on cash for a down payment. Wouldn't be able to do 20% down on the purchase price, but i can do 10% down so by the time my current property closes i can go right into the next one. 

My current hard money lender only offers 80% ltv at this moment, So i was looking to see if anyone had any recommendations of any lenders offering 90% ltv(or even higher). One thing i should mention is that i currently only have a 1 flip experience level, this would be my 2nd.

Thanks!

Hello!

I'm sorry if this isn't the correct place to ask this, its been hard to find videos to kinda go into the basic details of how to spot a deal since most information I get is just explaining the BRRRR method. From my rough understanding, the idea is to buy a distressed property, fix it up, rent it out, and then refinance it to pull your money out and move onto the next one. However, i'm primarily looking in the chicago land area(suburbs such as cook and dupage county), and very rarely does a distressed multifamily come onto the market. Most of the properties I see usually have tenants that are paying far below market averages for rent with updating needed in their units (usually just a kitchen and bathroom update). The asking price is usually high too, which makes me question if I'd even be able to refinance after raising rents and get my money out to re-use onto the next one.

I've heard something about rules to follow, like a 1% rule? Im unsure as to how that works. Or, if someone could explain how the appraising process might work in the case that there aren't much relatable comps in the area?

 I can give a real world example of a property im looking at.. Its asking price is $650,000 for a 6 unit that has a cap rate of 7%. Tenants are month to month, fully occupied, each unit being 2 bed 1 bath and would require updating in the units. I've only been able to find 1 comparable 6 unit comp which was in a different nearby city for $895k, nothing within the past 5 years for the city i'm looking in. How would I go about figuring out if this is a good deal, something im able to pull money out after refinance and use it on the next one?

Thank you! 

I very much appreciate all the replies from those giving me more insight on what i'm to expect, as well as offering recommendations for lenders! I will be getting in touch with a lot of you who asked me to DM you personally to get a better idea of rates and such. 

Thank you again for all the help everyone!

Quote from @Paul De Luca:

@Faiz Kanash

Surely your friend could recommend some lenders to you? Otherwise you can click the network tab and go to Hard Money Lenders. I've heard good things about Renovo Financial.

Quote from @Jonathan Klemm

Hey @Faiz Kanash - I'm kind of in agreement with everyone above.....doesn't your friend have a hard money lender they could recommend?

If not, I'd try connecting with Renovo, LimaOne, or Constructive those are a couple of the good Chicago lenders. If you need specific contact info feel free to reach out and I can hook you up.

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Unfortunately, my friend has never used a HML. He primarily does all his deals strictly cash. But thank you for the recommendations!

A curious question of mine since I'm looking through some options for funding... But could you apply for a FHA loan to purchase a habitable property that you intend to fix and sell after 3 months? Could FHA fund a fix and flip at all, especially if you don't intend on living in the property for more than 6 months?

thank you!