All Forum Posts by: Jeffrey Blackman

 What is a typical margin on a wholesale transaction?

To clarify my previous post: 80% LTV is available on single family homes, 75% LTV is available for 2-4 units.

Hi @Mario Morales, There are 2 things I would pay attention to in the scenario you describe. (1) Most cash out loans are limited to 75% -80% LTV meaning you wouldn't be able to get all of your cash back out. (2) The interest rates I see in the market are closer than what you've listed. I see HELOCs as low as 7.5%, so the difference is not that significant.

@Andrew Katz, if you will be living in your next house hack, you should investigate a conventional loan instead of hard money. You could potentially put as little as 3% down if it's a single family home and 5% down for 2-4 units. Plus today's rates for conventional loans are in the single digits, which are lower than hard money.

Hi @Andrew Katz, I'm curious to see if you moved forward with the HELOC and your next house hack. As you may have found in your search, there are lenders that will lend up to 80% of the appraised value on investment properties and don't require an appraisal.

Let me know if you'd like me to point you in the right direction.

@Jonathan Blanco, I'm and investor and a licensed mortgage broker so I've been on both sides of this conversation.

I would look for a lender that (1) listens to you and understands your strategy and needs (hint: it's not always money), (2) has experience working with clients executing your strategy and brings more to the table than just cash - be it advice, relationships, deal-team partners, etc., (3) gives you viable options and explains the pros and cons of each option and (4) you enjoy interacting with - this should be a relationship, not a transaction.

Once you find a few lenders like this (and you should have relationships with more than one), then you can start comparing rates and fees.

@David Hodeda, welcome to the crazy world of real estate investing! I'm both an investor and licensed mortgage broker. @Zachary Deal offers good words of wisdom! I think remote management can be a challenge, and many lenders (not all) will be very skeptical of lending to a first-time flipper located in a different state. Whether you are local or not, I also recommend finding a mentor and/or networking group, if not a partner, as Zachary suggest, to help you through the process.

Good luck!

The actor Jim Carrey has an interesting perspective “I think everybody should get rich and famous and everything they ever dreamed of so they can see that that’s not the answer.”