All Forum Posts by: Freddy Alban

I see hard money lending as just part of the cost when doing these kinds of deals. If I add up all the lender fees and my holding costs—like points, origination fees, and interest —I can figure out how much profit I’ll make and what my maximum offer should be. Even though the interest rates are high, it’s a great tool for people who don’t have all the cash to do a fix-and-flip. 

Another cool thing about hard money lenders is they work like a safety net. They look at the deal closely and won't lend you money unless the deal makes sense, so it helps you avoid bad deals. Speak with couple hard money lender there are plenty lenders that are local and knows the market. Let me know if you need few HML's

Hi David!

Welcome to the journey of real estate investing. it’s great to see your enthusiasm! I’m also in Charlotte and work with investors, so feel free to reach out if you’d like to connect.

Your focus on cash-flowing properties in growth markets is a solid strategy. If you ever want to explore opportunities here in Charlotte, I’d be happy to share some insights.

Best of luck with your first investment!

Hi Kathy! This property’s location in South End is a major win—walkability to shops, restaurants, and the light rail makes it very desirable. For a long-term hold, I wouldn’t be too concerned about the hill or alley access. Those factors are more critical in a fix-and-flip scenario where you’re focused on resale to an end buyer. As a rental, tenants will likely prioritize the location over minor inconveniences.

Your strategy of betting on appreciation and eventually pulling equity makes a lot of sense in this market. South End’s growth should support that play. I’d just recommend reviewing the renovation requirements for the historic district since they can add time and cost, but the right team can help streamline the process.

Good luck with the deal—sounds like a solid opportunity!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $242,500
Sale price: $430,000

I used private lending to cover the down payment and closing costs, then paired it with a hard money loan to fund the project. We went all in on renovations—tore down a chimney to open up the space, put on a new roof, installed HVAC, updated floors, and completely redid the kitchen. Total reno cost: $85K.

The best part? It hit the market, and in just 2 days, we had multiple offers and sold above asking price. Crazy how fast it moved!

Love when a plan comes together like this.

What made you interested in investing in this type of deal?

The location really caught our eye—close to Uptown Charlotte, which is always a hot area. Plus, it's a corner lot with a big yard, which adds a lot of appeal. And the comps in the area supported a strong ARV, so it just made sense to jump on it!

How did you find this deal and how did you negotiate it?

We found this lead through SMS marketing targeting tired landlords. The property had a tenant in place, so we had to navigate that carefully. They weren’t thrilled about moving, but we worked with them—returned their deposit and offered cash for keys to help them transition into a new rental. It’s all about solving problems and creating win-win situations. They vacated the property the day before closing, and everything came together smoothly!

How did you finance this deal?

I used a private lender to cover the down payment and closing costs, which got me into the hard money loan. The hard money lender financed the rehab, so it ended up being $0 out of pocket for me. Once I sold the house, I paid back the private lender at closing.

How did you add value to the deal?

We removed a chimney to open up the space and updated all the major ticket items—new electrical, HVAC, and roof. On top of that, we repainted the house to boost curb appeal and really make it stand out. Those updates made a huge difference in the property’s value!

What was the outcome?

The property was on the market for less than 48 hours, and we got multiple offers over asking price. It couldn’t have turned out better!

Lessons learned? Challenges?

Invest in a security camera—we had a break-in where someone lived in the house for days and stole appliances, which insurance didn’t cover. Also, always vet contractors, even with referrals. A poorly chosen electrician delayed the project by two months and cost me time and money. Big lessons learned!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Me :)

Hey, congrats on finding a potential flip—it sounds like you’re on the right track! One thing that could really help is creating a detailed scope of work before committing. This ensures you have a clear picture of what repairs are needed and helps avoid surprises during the rehab. It’s great that you’re pre-approved, but I’m curious why you’re leaning toward traditional lending instead of hard money, especially for a flip? Hard money can give you more flexibility and faster closings, which are often needed for investment deals. If you want help structuring a scope of work or exploring different financing options, feel free to reach out—happy to offer insights!

If you’re comfortable being a landlord, keeping it as a rental sets you up for long-term wealth. That $950 mortgage is a goldmine for cash flow. You can even use some of the equity from this property to reduce the down payment burden on your next home without "throwing away" the value you've built.

Hey, awesome job building equity and renovating your place! Since you’ve already put in the work, if you don’t need the cash for a down payment on your next home, I’d lean towards keeping it as a rental. 

With a $950 mortgage and rental rates around $1,500, you’d have strong cash flow and continue growing your wealth. Plus, you’re close to paying it off, and owning it free and clear in a few years would only boost your returns. The big question is: do you need to sell to buy your next place? It might be worth chatting with a lender to see your options. Just my two cents!

Hey Michael! Sounds like you're in an exciting spot with this property. If you're considering leveraging hard money lending (HML) for this flip, it could be a strong alternative to traditional financing—especially since HML is quicker to secure and designed for investors aiming to flip properties fast.

With HML, you're typically looking at covering a significant portion of both purchase price and rehab costs, which keeps more of your cash free for other expenses or emergencies. It's all about those margins, so once you get that walk-through done, focus on nailing down your numbers for rehab. HML lenders want to see a clear path to profit, so ensure your ARV and rehab estimates are solid.

For next steps, definitely prioritize a detailed inspection to confirm HVAC and interior needs. Contractors can give you ballpark quotes on the spot, which will tighten up your budget. And as far as legal—an attorney becomes essential once you're ready to finalize terms with either an HML or private lender to make sure everything's secure.

Hope this helps!

Hey, great questions! The 70% rule is solid, but in markets like South Florida, it’s tough to hit that target—especially with rising property values.

I think it’s more about being flexible with your numbers. Sometimes, I aim for closer to 75-80% if the deal has solid upside or lower rehab risk. As for funding, hard money can cut into profits, but it’s useful for scaling quickly.

If the numbers still work after interest and fees, it’s worth considering. Using cash is great if you want to keep all the profits, but it can limit your deal flow. 

Hope that helps!

Hey, with two cash-flowing properties that are paid off, you have a few solid options.

A HELOC (Home Equity Line of Credit) could be a great choice, allowing you to borrow against the equity in those properties with flexible repayment. Another option is a cash-out refinance on one of your properties, which could give you a lump sum to cover the renovation costs.

Both options tend to have lower rates than personal loans. 

Hope this helps!