All Forum Posts by: James Moore

I have a rental property South of Mandan and need some repairs made. Are there any investors in that area that wouldn't mind sharing their contractor for a few repairs? Its very difficult to find a good reputable contractor that isn't ridiculously priced in the Bisman area. Any help would be greatly appreciated.

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Bismarck, North Dakota

Quote from @Andy Nathan:

Quote from @James Moore:

Does anyone have experience with the Rehab Valuator Lite software? I saw an ad on Facebook today for the Lite version that is free.

Two items! First, BP has some rehab calculators. Second, have you ever worked with a hard money lender? The first thing they do is send you a rehab calculator spreadsheet. Those things are detailed and probably just as helpful as a calculator. Just my $.02

Thank you also

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Quote from @Allan Smith:

I've had a very simple spreadsheet for this for 7 years and have bought a couple dozen flips with it. Really don't think software is needed.

Thank you for your help.

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Does anyone have experience with the Rehab Valuator Lite software? I saw an ad on Facebook today for the Lite version that is free.

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Quote from @Wayne Brooks:

@James Moore You have no action against your listing agent and unless you can prove the buyer’s agent Knowingly participated in some misrepresentation, you have no action against them. You just have to proceed with the eviction process. Note, nothing you put in a lease agreement can circumvent the required eviction process.

I don't understand how there is no action i can take against my listing agent. We asked for a pre-approval letter, our agent stated she had personally seen it when there never was a pre-approval. It is the agents responsibility to protect the client. If a seller has to do all of there own research and be educated in selling a property, then what is the point if hiring a realtor? There will now be more cost to get the home ready for sell and more cost to get this person evicted.

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We posted our house for sale last year and finally had a potential buyer in October of 2021. I moved my family to Colorado after our realtor told us she had seen the pre-approval letter from the buyers lender. Shortly after moving, the buyer asked for an early access agreement and offered to cover the mortgage while waiting for the buying process to come to a close. We agreed to the early access agreement and the buyer moved in even after we had asked that they do not move in until after the carpet was replaced. We did not fight this since we where so close to selling. We then found out about a month later that the buyer did not in fact have proof of funding and stated she needed 4 more months of income due to being self employed. We agreed to give her more time. Durring her second month in the house we find out (from our realtor) that the buyer has fired her realtor and now the buyer will not answer her phone. She even stopped paying rent. We started the eviction process (her lease stated a payment not received within 5 days of due date would be an automatic forfeiture of the contract). The buyer found an attorney who backed her story with no proof (we just found out on the day i am writing this post that there was no proof). At the time, we believed the attorney so we stopped the eviction process and the buyer started making payments again. 2 weeks ago we found out that by her own admission that she never had a pre-approval, had never even tried to get financing, was in no way financially capable and doesn't even have a credit score high enough to get a pre-approval (according to a credit counselor my realtor referredthe buyer to). My realtor decided to run a background check on our tenant (something we thought she had already done) and found a long rap sheet. I know the criminal record doesn't mean anything but my question is, what legal options do I have? We are going to report both realtors to the North Dakota bar but do I have grounds to take both of them to court in a lawsuit?

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Quote from @Jay Thomas:

Hi James! 1st off, Welcome to the Real Estate Investing World!

This is a predicament and I can see why you're unhappy with it. The only thing I can think of, is possibly looking around somewhere else? Or asking them if they have another option with no membership fee?

Maybe ask other lenders if they accept payment after the loan is paid off because then hopefully, you'll have extra funds from a profit that will pay for it.

Good luck! If you do find another solution, I would love to hear what and how you did.

thank you. I already reached out to another lender and I am waiting for a call back.

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Fort Collins, Colorado

I found a pretty awesome deal and started working on a 0 down hard money loan. I was getting pretty excited until they told me there is a $3595 upfront membership fee but they give $2k back after the loan is paid off. This $3595 completely holds me up. The whole reason I have been looking for $0 down is because I don't have extra money to put toward anything but want to get started. Any ideas? Family is a no go.

1 Vote

Fort Collins, Colorado

Quote from @Andrew Postell:

@James Moore close. The crux of this is the hard money lender. HML will lend 75% of the ARV. So if I can BUY and REHAB at 75% ARV, then I don't need to come out of pocket at all. I would still need to REFINANCE though - because HML is "short term" money. Hard Money is only for 6 months or so. Eventually I would need to refinance. When I refinance, I'm not taking any money out. I'm just refinancing 75% of the ARV into a 30 year fixed rate loan. This is the BRRRR method in a nutshell.

Comparatively, some loans will require a down payment no matter what. So let's say you find a home that is valued at $200k and you can buy it at $100k with no REHAB needed - lots of loans will still require 10%-25% down - even though you have an OUTSTANDING deal! Hard Money won't. They base their loan on the Value...specifically the ARV. Did you go over 75% of the value? No, then we'll lend you everything you need - but you'll have to refinance. BUY - REHAB - RENT - REFINANCE - REPEAT

This is why we use hard money. If it's a great deal, then no money out of pocket. I hope that makes better sense.

That made perfect since. Thank you.

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Jacksonville, Florida

Quote from @Andrew Postell:

@James Moore hmm, I might need to clarify some things here.

If you are asking will a lender to a 100% LOAN TO VALUE (LTV) loan using nothing but the rental income - then absolutely not. No such product exists. It's hard to even have a 100% LTV primary home loan. You cannot get it on an investment property at all. 25% down is the norm. There are some 20% down options but there are some catches to those loans.

Now, if you asked will a lender finance 100% of my entire loan based on the rental income - YES! That is completely possible and what we want to use when focusing on that type of loan.

Why is this difference important?

Let's say you find an investment property with an After Repair Value of $200,000.

You can by this home for $100,000 and it needs $50,000 of rehab.

This would be a perfect scenario for a Hard Money Loan (HML) because most HML's will lend us 75% of the ARV.

Once the rehab is complete, we then refinance 100% of that $150k loan from the HML with a loan that just uses the rental income to help me qualify.

Did we come out of pocket? yes, because there are closing costs but we got 100% of the loan covered.

Anyway, sometimes these little nuances can make a difference. Hope all of this makes sense but feel free to post anything else if you need. Thanks!

I had to read the "Why is this difference important" explanation a few times but then it clicked. I think. You do a cash out refi using part of the equity to cover the down payment and closing cost as well?

Try to keep in mind that I just learned there are other than traditional ways to finance a home.

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Jacksonville, Florida

All Forum Posts by: James Moore

James Moore has started 7 posts and replied 23 times.

Post: Looking for contractor referrals in the Bismark/Mandan area

Post: Rehab estimator software

Post: Rehab estimator software

Post: Rehab estimator software

Post: Advise on a legal situation

Post: Advise on a legal situation

Post: Working on my first deal but now held up

Post: Working on my first deal but now held up

Post: 100% financing based on cash flow

Post: 100% financing based on cash flow