All Forum Posts by: Jonathan Tavarez

 Thank you all for the information!

I also have another post similar to this. I have a property I purchased cash and trying to get the cash without waiting 6 months to a year. Mortgage broker mentioned that to avoid awaiting seasoning period 2 things need to happen 1. No cash can be given at closing 2. There needs to be a title change. I have been wondering if I can put my money on an LLC, do a loan to the LLC (like a hard money from LLC) and then I refinance the property and pay the loan to the LLC. @Daniel O'Dowd what did you ended up doing?

I got a financing strategy question. When I buy a property all cash, I need to wait 6 months to do a cash refinance and get my money out BUT somehow if I get a hard money loan to buy a property (technically not my cash) the mortgage broker can refinance me out of the hard money loan with a bank the day after closing. So, I asked the mortgage broker how exactly that works/why is it that for the cash refinance I need to wait 6 months but to "refinance" out of the hard money there is no waiting period? He explained that there are 2 conditions that, if satisfied, we can refinance before 6 months. First condition is that no actual cash is given out at closing and second is that there needs to be a deed transfer (or similar). This got me wondering, is there a way to do all this without working with a hard money lender? For example, can I set up an LLC with a bank account, put my cash in the LLC and then do a loan against the LLC that is then refinanced under my name and the LLC gets paid? I'm just looking for a way to not have the money stuck in the deal for 6 months.

@Darrell Taylor My primary is in Laurel MD (Howard County) so I know the pains of investing in the DMV, my advice is look for a townhome or similar to rent in AA County, PG or Baltimore and keep it under $200K so you can be all in at around $55K or so and then get your feet wet as a landlord.  I have a few properties here in Laurel and also in Baltimore, reach out if you need some additional advice, always happy to help.

Just like mentioned by @Ned Carey call or visit zoning, they will pass you around a few times but they will provide all the necessary answers on what's possible and ideally do it before closing on the property.  You can always move forward and do conversions of all kind with no papers (specially in Baltimore) but just know if something goes south, you most likely will be on the hook for all/most damages. 

I would bring an additional point since I invest in different areas in Baltimore and have a few rentals as well.  It depends on what specific area you are looking at but honestly Baltimore prices can be so low that it feels like it hasn't appreciated much in the last 3/5 years (with the exception of high end areas like Canton, Federal Hill, etc.) because so much of that market is rentals (cashflow vs appreciation).  What I'm trying to say is if you buy something today and we get moderate appreciation or depreciation in the next 3/5 years we are probably still talking about $15K to $25K give or take so why not buy now.  On top of that Baltimore is great for rentals so buy now and when you are ready to move then rent the place.

On my way!

Hi all,

With so many lending options out there I was wondering what numbers you guys are seeing?  I was recently approach by a hard money lender offering:
Loans up to $50,000,000
Interest Rate: 5%
Purchase 95% LTV
Refinance 100% LTV
Origination: 1%

Not even the private money I have work with before is that cheap, not even mentioning how much lending is going on in Facebook.  So I'm curios, what numbers have you seen so far in 2022? (Fix&Flip or Buy and Hold).

I will add about ReaIT that you have to be an accredited investor to purchase those deals.  It looks like they are focus on the Detroit market.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $280,000
Cash invested: $50,000
Sale price: $370,000

Fix and Flip in Suitland Area. Project took a month longer than expected with some issues getting supplies and mayor delays on inspections. At the end we got the deal done but for sure a good amount of learning and adjusting to the new market conditions.

What made you interested in investing in this type of deal?

Single family home with a good amount of appeal from day one, nice lot and very good commute location.

How did you find this deal and how did you negotiate it?

I found the deal by doing my own marketing and negotiated directly with the seller.

How did you finance this deal?

A mix of hard money and personal funds.

How did you add value to the deal?

We did a complete cosmetic lift in addition to new central A/C including ductwork and other repairs.

What was the outcome?

Not as profitable as expected but still made a profit. The market conditions created many delays with materials, contractors and inspection schedules.

Lessons learned? Challenges?

The biggest challenge was inspection delays in addition to the amount of damage the A/C installation created in the property. There was also work previously done in the house with no permits (more than 10 years ago) but inspector was insistent in my team getting those items corrected as well. It was a struggle but we got it repaired, permitted and approved.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife Sarah Tavarez and I work all our deals together, we are the A team :)