All Forum Posts by: Jeffrey Blackman

@Marc Shin despite seeming to conflict each other, both @Jay Hurst and @Frank Pyle offer good points. #1 you can often find promotions for zero or low interest from furniture stores that you might want to consider. #2 many private/hard money lenders will consider furnishings if the deal, including the furnishings, falls into their deal box.

Believe it or not, it might be easier to include the furnishings in the deal with a significantly lower down payment if there is other rehab work to be done. We close BRRRR and fix and flip deals in 3 - 5 days. I'd be happy to walk you through the process if you have questions, just DM me.

@Stephen Rinaldi in which states do you offer this?

@Bill Roberts If you are on the loan and don't live in the property, you are considered a "non-occupant co-borrower." For FHA loans, that moves the down payment up to 25%. With a conventional loan, depending on the circumstances, you may only need as little as 5% down. I'm curious about why you are interested in an FHA. I'm also curious about the main reason you want to purchase the home is it to have continued ownership of the property, or help with financing because you are in a better cash, credit or income position? These are the type of questions you should discuss with a lender in your market.

Hi Anastasia,

I think you are smart to think about this ahead of time. Everyone seems to be strapped for cash around the holidays. As both an investor in Chicago and a residential lender, I've been on both sides of this challenge. Personally, I've had success renting units over the holidays, but I've held my breath each time. As an investor, obviously you want to get your property to market rents as quickly as possible. Your posting doesn't give a lot of the details I would think about to make the decision like the difference in rent and how long it would take to recoup a month (or more) of no rent, including any investment to spruce up the unit for new renters. You can also think about maximizing your cash reserves by minimizing your down payment at purchase. There are lenders offering 0% down on house hacking purchases. Direct message me and I'll be happy to talk through the options and/or refer you to lenders who may be able to help.

John, thanks for your excellent thoughts. The building is on the southside. I'm always above board on plans, and I'm obviously trying to minimize total costs. This is a short-term cashflow need driven by extenuating circumstances. Navigating the low value, prepayment penalties and ever increasing interest rates has made me want to see if there are some non-traditional products that might help.

@Erik Estrada, prepayment penalties are definitely something I will discuss with each lender as this is a short-term cashflow need brought on by multiple family emergencies. The building is fully occupied.

Thanks Mike, this is helpful.

Thanks for adding clarity here!

I own a 6-unit building free and clear. I bought and did a gut rehab about 10 years ago. I want to take cash out to make minor repairs and consolidate debt in advance of selling the property before end of year. Would this be a bridge loan, fix and flip, or some other animal?

Looking for suggestions for cash-out financing for a 6-unit building I own free and clear. Want to make minor repairs and consolidate debt in advance of selling the property before end of year. Building is fully rented ($6,900 /month), however, with a value of $600,000 a normal LTV puts the loan amount below the $500,000 many multi-family lenders have as a minimum. Not sure if bridge or fix and flip, or something else would be best. Open to all recommendations. Thanks.