All Forum Posts by: Gene Kim

I'm considering making private loans to investors nationwide and looking for national home inspection companies to be a central resource. I know NPI does this but are there any others that people have used? Any input would be much appreciated. Thank you. 

@Andrew Self there are attornies you can hire to resolve your credit issues. Raising your credit score will get you far better rates personally as well as with private lenders for your LLC.

@Michael Challenger I scraped all the cash I could find and borrowed from family. It was a risk but thankfully paid off for me. If I wasn't able to get the cash together, using a private lender would've been a good option. Despite paying fees, doing a deal and making some profit is better than sitting on the sidelines. 

Hey Shayan. Business loans typically won't let you purchase a property if you read the fine print. Even if they do, they also may not let you borrow enough to purchase and renovate a property. Credit cards have the same limitation on the amount you can borrow and will likely end up costing more than private lenders. I'd recommend a private lender since you have an LLC and good credit. There are plenty out there with fair rates and lower fees. Good luck!

Not owning your primary residence is typically not an issue for most lenders. You can get a DSCR rental loan as long as the rents adequately cover the expenses.

Nice to meet you. What kind work do you do?

Hey Gene, for your situation, you probably need to get a fix&flip loan to acquire and do the renovation. Once you complete and rent/stabilize, you should easily be able to get into a DSCR loan. Some lenders offer discounts to return borrowers so maybe look into both flip and DSCR rates when finding a lender.

Price out as much as you can in terms of materials and estimates. Make sure the estimates are very detailed (scope, SF, $/sf, schedule, etc) to ensure that there is a clear dilation between contract work and change orders. Also, for flips, I like to reserve an additional 15-20% in contingency for unforeseen conditions or changes. 

I'd recommend a HELOC for your situation, especially since there is already good equity in the project. The rates will be lower and will allow you to maximize profits. Should you decide to do this full time and do more than 1 flip at a time, private lending and fix&flip loans will be the way to go. Just make sure you set up a LLC to rack up the required experience. Good luck!

I used Rocketprint for my land flipping business. They were the cheapest when I researched. Pretty user friendly as well. Good luck!