All Forum Posts by: Isaiah Foster

 Hi Wyatt, 

Currently looking for a small unsecured LOC to help as we try to get more flips going at one time, with the goal to use future income towards rentals. So don't have anything for collateral as we speak. But really, I am just looking for something in that $50k range like we have currently.

My business partner and I were able to qualify, with our personal guarantees, for a business LOC through Teachers Credit Union (now Everwise) for our flipping needs. We are thinking about requesting an increase since we have used it, and paid it off, three times now and we would like more. However, I remember them saying their maximum unsecured amount is $50k.

Does anyone know of any other banks that are easy to work with that will also do a business LOC, uncollateralized, with guarantees? Would like to open another as we are looking to increase the amount of flips we can work on at a time, but want to have more available funds as a backup.

Thanks! 

 Sorry I’m just now seeing this post. Little tiny town to the west of Indy. I’ve been working on flips primarily in and around Crawfordsville, but good houses to flip usually get gobbled up by a few local guys so I’ve been looking in the smaller towns. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,500
Cash invested: $8,050

My business partners and I just purchased our 2nd flip with our business, AIM Investments, LLC.

This property is ~1,500 square feet with 3 bedrooms and 1 bathroom.

We are working with a local contractor that has experience with flips, and will be putting $25k into the home.

$80,500 purchase
$8,050 cash down
$8,050 closing costs (Hard Money Lender)
$25k reno costs
$175k ARV

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

We found this deal on the MLS through our realtor. Original asking was $120k, then was decreased to $100k. We offered $80,500 and it was accepted as the seller needed to move out ASAP.

How did you finance this deal?

F Street Investments - Hard Money Lender

 Thanks, Jonathan! 

I currently have budgeted in $2k/unit per year for repair costs, or about 10%. Do you think it should be more? Also, my thinking is 2 months worth of security deposit to cover any costs as well. Thoughts?

 Thanks, Abby! Do you mean a warranty on the unit? That is something I am unfamiliar with. Is that a pretty common thing? 

 Thank you for the tips, Nick! By a 5LTV hit, do you mean an additional 5% down on the property? 

Thanks for the tips, Bob. I had not thought about HOA liens.

The units are in Indiana. 

Thanks, Drew! I just checked the HOA and cash flow is still there. Definitely will check to see who owns the other units!

I have the opportunity to purchase two condo units within a complex. Has anyone done the same before? Whats the best route on these? 

Reason I am interested in this is because it is on a college campus and can be leased to college students. I can get a 3 bedroom unit for$75k and a 4 bedroom unit for $80k. The 3 bedroom unit can be leased out for approximately $1600/mo and the 4 bedroom can be leased for about $1750/mo. Almost seems stupid not to buy the units. 

Are there any hard money lenders that would help finance this? Ultimate goal is to renovate them and then lease for even more.