All Forum Posts by: Derek T.

Yes my hml does 100% and at times I don't bring anything to the table (closing,  draw fees,  title work..... Absolutely nothing to the table).   It took me a long time to find a more flexible hml and I didn't start getting 100% lending until 4-5 successful deals together.  I still front the draws in most situations.   So they exist but it takes some work.   Also remember with hml you have to front the draws,  over budget scenarios comes out of your pocket and you have to pay payments so $10-15k doesn't go far with rehabbing on my flips. $30-40k per house would be my  recommendation as the minimum needed to get through a flip. 

This is your personal property so if you and your wife love it then make sure you get it. No need to come up low on a house you love and regret it for years from now. In my area $10k over list for a well priced REO to OO is not uncommon. Personally I would look at $187-190k with 3% closing help. Remember banks look at it from a net proceed standpoint so they factor in the net after the closing costs are factored in.

As far as the repairs,  here is what I would expect to pay.... 

Appliances- $2k

Granite counters- $2k-$2500

Upstairs carpet- $1k

Laundry flooring- $250

Kitcdhn flooring- $500

Window- $200

Yard work- $200-300

These prices include installation and are only a rough guess as I don't know your size of your areas and all that. But you should be able to do all that for $6-8k.

I think it's important to note that he wholesaled an estate sale house off the MLS and not a short sale or REO.

You can get your EMD back with your inspection clause that it sounds like you have. Yes based on the inspection you can renegotiate based on the findings.

Many of the answers on here aren't correct. In regards to a bank loan (conventional, VA, FHA) the down payment can not come from a borrowed source. You can take out of your IRA, 401k or have it gifted to you but you can't borrow from Lending Tree for example and use it as your down payment.

In regards to HML, if you are upfront with them many of them wouldn't accept borrowed money either as your skin in the game. Borrowed money (on top of borrowed HML money) shows lack of financial resources necessary to rehab the house especially if times get rough. Some may not care but I know mine definitely would. Also if you borrow $25k on a flip and use hard money, you are sinking into a deep hole. You would have to make $50k just to make that deal worthwild and make $25k. $50k deals aren't rare but aren't all of the place either in my market so I would be really careful about doing it and would run my numbers on a waste case scenario to make sure I am making good money. Nothing like doing a flip for it to sell 6 months later to realize you made little to no money.

Meghan most will make you pay the points at closing especially if you are new.   If they include the points in the loan they will probably make your bring some money to the closing table on top of the closing costs.  They may require money in either way. 

No debt will not pass to you. If it's a REO then the liens were wiped out at the foreclosure. Also your title company will verify things before you close to make sure there aren't any open liens.

Why would the appraiser need to go in the attic space? Is it finished space or storage space that would affect the value?   I can understand the inspector up there but not an appraiser.  

I would imagine with it being 203k it wasn't the first time that he's seen mold.  He's needs to put on a suit and respirator and get in there.   If it were me I would call everyone I could think of until this gets solved.   Call call call and eventually someone will listen and rectify this.   That's absurd. 

Large houses are money pits and I couldn't imagine a mansion (from what this sounds like).   I've done a 5k Sq ft house as my largest one and that drove me nuts trying to keep the budget under control.  If you don't have significant experience,  capital and reserves I wouldn't touch it.  I contemplated one for a minute until I started adding up rehabs numbers over $250k.  So between the rehab costs,  financing costs and holding costs I wouldn't touch it.  For me it would be like doing 4-5 of my normal projects at the same time,  and while I am doing 4 now I wouldn't want all that tied up in one property. 

4-5% is typical when buying and 9-10% is typical when selling.   All depends on contract,  financing, etc.  But when estimating deals I just use 5% for buying and 10% when selling as my rule of thumb.   If it comes in lower then great.   If you negotiated 3% closing help,  that would be pretty standard in my area.