All Forum Posts by: Gina Williams

@Emily Brozovic Thanks for your info. What cities are SE Michigan. I'm in California.

Thanks Clay Powell, I would like a contact name.

thanks for the info. I plan to invest there because it seems to be pretty good working class neighborhoods there. The house that I may go into escrow has a renter as well as the renter's licence. All numbers look good.

I'm planning to buy my first rental property as a buy and hold in Lansing, Michigan. I think this city, as well as East Lansing, will be one of my investing cities. I have researched extensively on these cities. Can anyone tell me more information about Lansing and East Lansing Michigan? Is it a good market to buy and hold and rent? Do jobs seem to be stable? Is anyone currently investing in these cities? Please give me the ins and outs of these two cities. Thanks!

Thank you all for your help and prompt response!

Does anyone have a good re-fi lender to re-fi out of my hard money loan?. Seasoned or non seasoned? This would be in California and Michigan

Yes, I guess the English is ok....but his response seemed abrupt. It's something that doesn't feel right. I tried contacting him and received this email back. see below:

Yes, I also got into the program for $995. And I agree, it's not worth it unless you are REAL careful with your numbers. Here is the thing, they fund the property for 65% of the ARV. That includes your rehab costs. Your responsibility is Ernest money of any amount you negotiate, appraisal, inspection, and whatever start money for rehab. They'll give the rehab start back to you as wel as anything else you put into the property including appraisal and inspection. This is after you resale or refinance.

They pay all the rehab cost. If you don't have rehab cost, then it's 65% of the ARV. You don't have to rehab. Sounds good so far right? Then you have up to 6 months to hold while rehabbing or holding property and you will pay interest only payments of 16%APR. Well, if you sell it, it would have to be for that initial ARV. Then the profits are split. You 70%, they get 30%. That SOUNDS not too bad. But then, before the profit split, they charge 6 points on the original purchase price plus $2,500 in fees and then the price of closing costs. Kind of bad, right? I think what's really bad. Well if you refi to get out of their loan, you have to refi with the original purchase price and still give them all those fees INCLUDING the charge of the 30%!!!!! You can keep the 70% in the property.

So they are making out like bandits!!! I was under the belief that if I buy and hold and refi out of their high 16% loan, I don't have to give them the 30% on top of everything else. That's not true. They don't make that clear. So buying with them and holding would be a horrible idea. Maybe, just maybe, you do a rehab, flip, hope you sell at the ARV, pay the fees, and run with your 70%. The numbers have to really work and you have to get a property probably below the 65%. Again, the final profit number for you after ALL that craziness has to work for you if you choose to use Freland Funding.