All Forum Posts by: Joseph A.

I am in the process of setting up initial purchase and refinancing lending for BRRRR deals in a new, low priced market (avg. purchase price of around $60,000). I plan on opening balance transfer business credit cards and 0% intro interest credit cards to fund my purchase and rehabs. At the same time, I want to get pre-approved for refinancing before even searching for properties.

I know when applying for a mortgage, opening LOC and receiving hard inquiries during the process may mess up the process and effect how much I can get approved for. However, since I assume I would only need to get approved for at most $150,000 (75% of max assumed ARV of $200k) and I know for certain that I can get approved for at least $300,000, would it even matter if I opened these LOC before, during, or after the pre-approval process?

What's up BP ! Finally upgraded to the Pro account. ( I was tired of not being able to go back to my reports lol )
Looking to do my first BRRR deal on this property. My goal is to rehab, increase value, pull out equity to go get another deal. I was conservative towards rent and went high on rehab cost. The rent numbers are only for the first and second floor. I plan on living on the 1bedroom in the 3rd floor. I am going to have separate meters for utilities. Type of loan I am going to use is a standard FHA 203k. Any feedback would be greatly appreciated.

Thank you in advance guys. 

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*This link comes directly from our calculators, based on information input by the member who posted.

Good morning guys!!!

So really quick guys would like to get some feedback from you experienced rehabers. Initially this wasn't even the approach I thought I would take as my 1st project in real estate but after connecting with a cousin I haven't spoken to in quite some time I've come to the realization that it might not be a bad idea to join him in a rehab flip project. Apparently his being doing this quietly :) for quite some time now and his done well for himself. If we move fwd with this deal this would be his 3rd flip. Since he holds a side job and has lived in his properties while he fixed them up he moved at his own pace. His 1st flip he made about 40-50k, his 2nd about same and now his is looking at his 3rd which i am thinking about joining him. Long story short guys, we found a fixer upper in the Morris county area of NJ. My cousin has lived in this area most of his life and knows it really well, the house is in a good area near schools and shopping centers. The house needs mostly cosmetic fixing, siding,windows, floors, bathrooms kitchen etc. Here is the kickers guys my cousin does a lot of the work and has good connections for getting cheap hands to get the house done quick and a lot cheaper in about 3-4 months tops. We then want to put in on the market. His agent his worked with for about 20 yrs got his house sold in about 2 months. 

So guys here is my major concern and please excuse my ignorance if it comes across that way but most of the subjects I have been educating myself on where to buy hold and rent I didn't expect for this opportunity to arise but it looks like a good one and its happening fairly quick. 

So here is the deal guys I had quick conversation with my cousins agent and she tells me we cant use a 203k loan so she puts me in touch with one of her colleagues for another type of "rehab loan"  as she called it. I get a call from a guy who after talking to him found out this was a hard money type of loan. He is offering full financing for the home and rehab cost except for down payment which we would pay 10% down and 10% interest on the loan. The way I understood it is I will only pay 10 % interest on whatever amount I use for that month for the rehab portion of the loan.Now he also said he will open up a llc and I would just pay the state fee. He will also run my credit even though he mentioned I do not need stellar credit which i do happen have just in case you need to know :) He was able to get me a pre-approval letter right away. I mean the guy moved quick (I Also do plan on going over the facts with him again)

Question is what other loan options exist besides hard money??? I mean i have good credit and some savings for down payment but a conventional loan is asking for 20% down vs the 10% down for the HML but then again conventional wont cover the rehab cost and 203k is out question since i am not living it. Essentially I am trying to figure out which is best way to fund this thing???

Today I plan on digging up some of the great calculators offered on the site to run the numbers but here is the jist of it. 

• The home is listed for 100k we offered 132k. Its a single family 3-1. 1200 sq ft.
  

• The budget estimate for the rehab cost is about 70k ,we strongly believe we can get this done for about 50k maybeeee a little less.

• ARV for the home is around 300k, homes in the area are selling in range of 280-330k. We are also thinking of adding half bathroom on main fl which should add some value and also adding heating and coolant.

• Taxes in Morris county avg around 5k a year. Insurance about 1200 a year.

Again guys we plan on getting rid this thing in under 1 yr. Ideally 6 months but only thing that can hold us back is the selling of it more than the actual rehab because my cousin and I are confident we can get this done is under 4 months worst case scenario 5-6 months if we run into unexpected "surprises". Always have  to be ready for this type stuff JUST IN CASE.

 Joseph where do recommend meeting investors to partner with? My team and I work I work in the property management field but as yet we don’t have the funds to leverage in a buy and hold deal. We have value to add but as yet haven’t found investors willing to work with us.