All Forum Posts by: Jonathan Prettyman

I also eventually plan to rent my primary out. 

just bought my house 3 years ago. I have no equity, unfortunately. I owe 132k, would appraise for at most 150k.

hello,

here is a quick type of generic deal I am looking at along with details of my current status:

I have 70k cash. looking to fix and flip. I will be hiring a contractor. I can find a house

for anywhere from 50-70k with an ARV of 130-165k. (would need 30-50k for rehab cost. putting total investment at around 100k) was told I will not qualify for conventional or rehab financing since I am not owner occupant and it is not livable. was told to go hard money route since I don't have enough for both cash purchase/rehab costs. trying to figure out how to make this work.

questions are:

how do I approach a hard money lender?

how do I utilize my 70k cash for this type of scenario?

Do I buy the house outright with cash then look for hard

money for rehab cost?

will I need a deal in place to aquire a hard money loan?

looking for advice on how to go about this given the current stats I provided. appreciate any comments this community of people has been wesome for learning. 

hello,

here is a quick type of generic deal I am looking at along with details of my current status:

I have 70k cash. looking to fix and flip. I will be hiring a contractor. I can find a house

for anywhere from 50-70k with an ARV of 130-165k. (would need 30-50k for rehab cost. putting total investment at around 100k) was told I will not qualify for conventional or rehab financing since I am not owner occupant and it is not livable. was told to go hard money route since I don't have enough for both cash purchase/rehab costs. trying to figure out how to make this work.

questions are:

how do I approach a hard money lender?

how do I utilize my 70k cash for this type of scenario? 

Do I buy the house outright with cash then look for hard

money for rehab cost?

will I need a deal in place to aquire a hard money loan?

looking for advice on how to go about this given the current stats I provided. appreciate any comments this community of people has been wesome for learning. 

60/40 which way?

@rich o'neill 

these properties are in glenolden/Clifton heights 

*after work and weekends

thank you both for the responses. ok so here is a little background. he owned his own general contracting biz years ago. got out of that , he currently works full time as a maintenance facilities foreman at a school district. but he is very active in doing side jobs. he  has many connections in the trades. so essentially this would be an on going relationship for us. as he is looking to supplement his income. and hopefully do it full time to quit his job. he is very experienced and trustworthy. does excellent work as he has remodeled my basement.  so he and his partner would take on these jobs day after work/weekends to get done in a timely matter.  besides any subs that may need to come in during the week. so all In all he would be More on the GC side managing the project all while still providing labor. he really wasn't that Strong on any of the 3 options, 

Hey guys,

Here is an example of my first deal I am looking to do. I mainly need advice on which route to take with my GC, who is my father in law.

I proposed to him 2 scenarios. and he suggested a 3rd.

Initially I came to him with this idea. I want to get into buying and flipping and he would be my contractor. so I would put up all money. secure a mortgage, carry the holding costs and I strictly pay him to do the work with my own money. then When I sell I recoup all profit. another option I suggested so we could pay cash would be if we went 50/50 on everything. (he puts up cash or line of credit) and we split profit at the end. so he suggested a little different of a 50/50 split which I am unsure about? So I would put up all money (mortgage, material, etc) no labor cost. then when we sell we split all profit after I get all money I put up back. so he puts up no money but gets paid when we sell. also he would bring in another contractor as his partner to help with work. so his idea was when we sell, I recoup all money I put out of pocket and I would get 50% of profit and he and his partner split the remaining 50% at 25%/25% for doing the work.

Example of a deals S price range I am looking at.

50-60k purchase price (hopefully cheaper) of a row home/townhouse in suburb in Delaware county area Philadelphia

Full renovation

35-50k in renovation costs (that would be with labor included)

total in and out costs roughly 90-110k and comps are 130-150k (these are all general numbers, not a specific deal.)

so my question is which route should I take with him and is his proposed "50/50" deal fair? I understand if I pay him per job I have a higher risk and higher reward. and he gets paid regardless. and worst case scenario I rent it out if I can't sell it for what I want. the other side is if we are all invested then nobody gets paid until we sell.

any advice would be greatly appreciated it. thank you.

Hey guys, Here is an example of my first deal I am looking to do. I mainly need advice on which route to take with my GC, who is my father in law. I proposed to him 2 scenarios. and he suggested a 3rd. Initially I came to him with this idea. I want to get into buying and flipping and he would be my contractor. so I would put up all money. secure a mortgage, carry the holding costs and I strictly pay him to do the work with my own money. then When I sell I recoup all profit. another option I suggested so we could pay cash would be if we went 50/50 on everything. (he puts up cash or line of credit) and we split profit at the end. so he suggested a little different of a 50/50 split which I am unsure about? So I would put up all money (mortgage, material, etc) no labor cost. then when we sell we split all profit after I get all money I put up back. so he puts up no money but gets paid when we sell. also he would bring in another contractor as his partner to help with work. so his idea was when we sell, I recoup all money I put out of pocket and I would get 50% of profit and he and his partner split the remaining 50% at 25%/25% for doing the work. Example of a deals S price range I am looking at. 50-60k purchase price (hopefully cheaper) of a row home/townhouse in suburb in Delaware county area Philadelphia Full renovation 35-50k in renovation costs (that would be with labor included) total in and out costs roughly 90-110k and comps are 130-150k (these are all general numbers, not a specific deal.) so my question is which route should I take with him and is his proposed "50/50" deal fair? I understand if I pay him per job I have a higher risk and higher reward. and he gets paid regardless. and worst case scenario I rent it out if I can't sell it for what I want. the other side is if we are all invested then nobody gets paid until we sell. any advice would be greatly appreciated it. thank you.