All Forum Posts by: Gina Brunello

Considering buying a property sent to me by a Wholesaler friend. Id like to know the best tips and strategies for negotiations and the process in general. I am a Realtor and and very aware and knowledgable of the general buying/selling/contract/etc. This will be my first investment property to flip. Thanks in advance!

List price - $209

ARV - $290

Reno- $25

Accurate numbers. 😁

@Scott Scheel

Scenario-

Myself and my biz partner want to buy a flip and do it ourselves.

Could potentially get a loan and do it. Cost are not too crazy with conventional.

Or use cash from silent investor- no part in the flip.

Thoughts?

@Pennie Heath

Were they are partner or just a silent investor?

So 10% on the money they let you borrow, correct?

$210k and $21000 to them.

Thats more than loan costs. Makes sense if they were a partner but not if they were just a silent investor, correct?

I have a family member who has offered to fund my first house flip, cash. If he was solely used for funding, no part in flip/or rehab costs- what is the appropriate amount (%) of profit would be fair for him to take? I am fully able to obtain a conventional loan for the flip but to avoid funding costs and a 20% dp, I am considering the cash funding, also making our offer stronger. Please any advice and info is appreciated on how this works. Thanks!

@Ryan Blake

Thank you for taking the time out for the great info and advice. It greatly appreciated!

@Ryan Blake

Thanks so much for this breakdown.

So other than the required docs, 20% down instead of 10% and a slightly longer loan approval- conventional seems to be the way to go to avoid the points and fee.

Really with conventionl- im looking at a 20% downpayment with very low interest monthly compared to hard money, and thats really it. Other than normal closing costs.

@Ryan Blake

Thanks for all that info, super helpful. Id really like to know a good idea of before closing costs. So let me give you my example:

Purchase Price flip for $210000

After reno sell at $370000 (Im an agent- comps FULLY support)

10% down

$50k Reno (Probably wont need loan for this)

Excellent credit and income

3 month max flip

Give me hypotheticals on when Ill be paying what.

Sounds naive but id like to pretend to not know anything at all so I am fully educated and knowledgable before pulling trigger.

Thanks for that info. How long was the loan approval process/funding? Id like to close on it asap. Also- what was required for the loan from you? @RafieAhmed

@Kyle Maxwell

Why will you be choosing them on your next?

@Pennie Heath

Okay. Thanks Pennie. Im looking for a 3 month flip, no penalty, house is probably not in move in ready condition but not too far from it. Huge ROI, nervous about all the hard money points and fees. Their closing costs are around 3.9% with interest being at 10 % and first payment after closing. After the downpayment, there is nothin owed until closed. And cash to close. Then you payback loan plus interest. But why would one not pay it all back as soon as they close and only have the one month interest?