All Forum Posts by: Janet Pritchett

Hi - I was just curious if anyone has used backflip as a hard money lender? From what I have researched they seem legitimate but the person I am working with is flakey, takes forever to answer questions so I thought I would see if anyone else had experience with this lender. Thank you!

I am always happy to chat about hard money - and I am biased, but I think I am an excellent communicator! ;)

Hi Janet, Are you a hard money lender or a traditional lender?

Both! I’m a broker that has access to conventional, non-QM, and hard money loans.

0 Votes

Portland, Maine

Quote from @Magdalene Leon:

I am always happy to chat about hard money - and I am biased, but I think I am an excellent communicator! ;)

2 Votes

Portland, Maine

With a HELOC, they could take some of that equity out - sometimes as much as 80%. So, potentially $280,000. HELOCs usually have higher interest rates, but if they are bringing in rental income that offsets that cost, it could be worth it.

The other option could be doing a fix and flip loan, if they have reserve money and then refinance into a DSCR loan, they could be into it for less money than a conventional investment loan or DSCR from the begining.

I am happy to talk it through with you! :)

1 Vote

Greensboro, North Carolina

I have experience with fix & flip/rehab loans and DSCR - big hitters for the BRRR method! Let me know if you want to talk it through! :)

0 Votes

Great topic! I haven't had someone misunderstand me because I always say "100% financing of the loan and rehab costs, requiring you to bring much less to the closing table" and then proceed to explain lender fees, insurance, and title fees that are due at closing. :)

1 Vote

Quote from @Ian Stedman:

I guess my hang up is that if I'm already using loaned money as a down payment, how will the bank approve another loan on top of the HELOC.

You could consider a DSCR loan for the investment property, removing the debt-to-income requirement for a conventional investment property.

0 Votes

Hi Jade.

Lender's Title insurance seems high, but that could be because of location. For instance, I quote $210 in Indiana. This is something you can shop for, so you can call title companies to see what is normal.

What is hitting you for rate is the LTV and the fact that it is a second home. Both of those things will contribute to the higher cost of the rate.

1 Vote

San Antonio, Texas

Quote from @Moises Silva:

Hello,

My name is Moises. Recently in this year I sold my first home and relocated to Houston in which I purchased another primary residence. I been researching and doing homework on potentially taking on a rehab project and flipping it once done, I have a few properties/areas in mind. I spoke to my lender and they advised me to wait a year or 2 before applying for another mortgage since I just purchased my primary residence.

I was thinking of looking into a Hard Money loan instead of traditional lending in order to start this project, in hopes of selling the property once fixed and paying off the loan. Any recommendations or advice will be truly appreciated.

Hi Moises! Congrats on your move & new place! :) Hard money is a great way to get started - you can possibly finance 100% of the purchase plus rehab and then walk away with a profit. In my area, central Indiana, there are still great fix and flip opportunities! Let me know if you'd like to chat further about it!

0 Votes

Houston, Texas

@Jacob Zivanovich sounds like a plan!

Yes! Let’s connect!

0 Votes

If you’re not dead set on house hacking specifically, I’ve got a couple of ideas that might get you started without having to prove income. Or, if that’s what you really want to do, what if you used a different type of loan to get into it. I’m not saying partnerships aren’t good - but if you didn’t want to rely on someone else, I bet we could figure something out!

1 Vote

All Forum Posts by: Janet Pritchett

Janet Pritchett has started 0 posts and replied 11 times.

Post: Looking for advice on backflip lender

Post: Looking for advice on backflip lender

Post: Using a Heloc to BRRRR first long term rental question

Post: Heloc to coventional loan

Post: 100% Financing: Why It Doesn't Mean Closing Costs Are Covered

Post: Heloc to coventional loan

Post: Closing first vacation home mortgage - are these normal costs?

Post: Financing a rehab and flip

Post: House Hacking Partnership

Post: House Hacking Partnership