All Forum Posts by: Dalton Dellinger

@Seth Wilcock I'm interested. Haven't heard anything from you yet.

Hey everyone. I'm going to be doing some renovations to my properties soon and looking to pull some equity out for flips. 

I have a commercial building with 3 occupied units. It appraised for $82,000 a few years ago with 2/3 units occupied so I'm assuming it will appraise for more. 

I have a single family house that appraised for $70,000 a few years ago. After improvements it will be worth $100,000 to $115,000. There is a blanket mortgage across the commercial building and this single family home with a balance of $79,000. 

I own a duplex with a 3.75% FHA mortgage. It appraised for $100,000 several years ago so after the improvements, I'm assuming it will be worth at least $120,000. It currently has a mortgage balance of $73,000.

So in total I (will) have about $300,000 in assets with total liabilities of $152,000. I'm looking to get an LOC or 2nd position loan across them since they have great interest rates (3.75% and 5%). Does anyone have any recommendations for online lenders that can help me get this done? I am in Southern Indiana if that helps.

Thanks!

Dalton

Hey everyone. I'm going to be doing some renovations to my properties soon and looking to pull some equity out for flips.

I have a commercial building with 3 occupied units. It appraised for $82,000 a few years ago with 2/3 units occupied so I'm assuming it will appraise for more.

I have a single family house that appraised for $70,000 a few years ago. After improvements it will be worth $100,000 to $115,000. There is a blanket mortgage across the commercial building and this single family home with a balance of $79,000.

I own a duplex with a 3.75% FHA mortgage. It appraised for $100,000 several years ago so after the improvements, I'm assuming it will be worth at least $120,000. It currently has a mortgage balance of $73,000.

So in total I (will) have about $300,000 in assets with total liabilities of $152,000. I'm looking to get an LOC or 2nd position loan across them since they have great interest rates (3.75% and 5%). Does anyone have any recommendations for online lenders that can help me get this done? I am in Southern Indiana if that helps.

Thanks!

Dalton

 Where are you seeing the redemption period rules? In my local county (Knox) there is no redemption period for sheriff sale properties. On the day of the sheriff sale, you bring a cashier's check by 3pm and they give you the deed to the property. 

To address the clear title issue: we have a great relationship with a title company in our area who will run title searches for us for free before the sheriff sale. 

I have also heard of people creating an LLC with a private money partner where the money partner deposits the cash into the business bank account and the operating partner can have access to it. Obviously this would be with a high amount of trust. I am just trying to think of a contract to offer more security for the money partner. Thanks for the feedback!

@Justin Summerlin

Bumping this post. I'm very interested in the ROBS plan as well.

 Hey Jay I appreciate the post.  What do you mean by "They sunset in a few months automatically?" I did some research and it looks like the IRS has 10 years to collect. There are some things that can extend or suspend but it's a little difficult to understand. I'm not familiar with it much.

Thanks for the advice.

 Thanks for the feedback. Good point. I think in that case it should be explicitly stated in the contract that the lender will only lend on properties that have clear title. For properties with a lot of equity, we can have title searches done. 

I had an idea: drawing up a contract for a private money lender so we could use private money to buy properties at a sheriff sale. It would say something along the lines of "Private Money LLC agrees to lend $500,000.00 to 123 Investor LLC for the acquisition of investment properties at 12/01/2022 Sheriff Sale at 123 Main Street in Springfield, Indiana. If a property is acquired, then a 2nd contract will be created and signed based on the specific property. If no property is purchase, 123 Investor LLC will return all capital plus $500 for a convenience fee to Private Money LLC." Something along those lines. Does anyone have any recommendations? I'm in Indiana if that matters.

@Caleb Bertsch did you find anything for this? I had an idea: drawing up a contract for a private money lender. It would say something along the lines of "Private Money LLC agrees to lend $500,000.00 to 123 Investor LLC for the acquisition of investment properties at 12/01/2022 Sheriff Sale at 123 Main Street in Springfield, Indiana. If a property is acquired, then a 2nd contract will be created and signed based on the specific property. If no property is purchase, 123 Investor LLC will return all capital plus $500 for a convenience fee to Private Money LLC." Somet along those lines.