All Forum Posts by: Josh Anderson

So, I live in Alabama, own and run a medium size rehab/remodel company. 

Found a house that is good pickings for a flip. Purchase price is 47k with around 25k of rehab. Using a hard money lender with 20% down. 12% interest only payments with 5 points. 

House is in the USDA rural area, and I plan to offer 5k towards closing. List price is 120k

Its a 9 month term.

I have done my homework, feel good about the area and the price.

However, I like a back door, or Plan B for the OS moments. Given that I live in Alabama and have to use some form of a corporate entity, for this lender. I had looked into a Helo Loan, from the bank that I use. But it is a personal product, and you have to pay off a first loan, and if the loan is the company name, I couldn't use it.

Thoughts, options?

I have a 5-3 flip that I am interested in doing.

Rehab and purchase cost around 180k

Comps show a 290-350k ARV

Timeline 90days

Looking for around 60-65% LTV

I build and remodel homes so it would be my crew which cuts down the cost, along with bringing some cash to the table 

Looking for a good contact for a hard money lender that lends in Alabama.

It depends on what you are using the house for, if its a personal home you plan to stay in for many more years, I would say invest in something high end, though gutter helmet in my area runs from $5-$8 a running foot. 

If this is a rental, I would recommend a vinyl snap in that is sold at HomeDepot or Lowes, comes in white or brown (here) and cost around 40-50 cents a running foot. Easy to install and works very well. It should last in the 3-4 year mark which for the price is a good return.

Avoid the metal flip down ones like the plague they dont last and tend to bend and flip over more times then not. The super cheap by the roll is also trash, and the foam insert as overpriced and dont work for the price.

Hope that helps    

So, I missed last Thursday webinar and can't find where the link is for the latest.

Rob welcome always a plus to have someone on board with past experience! Hope the site grows you. There is a weekly webinar by @Brandon Turner which is always outstanding. 

Again welcome and happy learning! 

So to answer my own question.

After lots of phone calls, I found that Wells Fargo offers 203k with a very competent agent out of Atlanta. Jeremy Walton 404--435-8666

They allow for what is called a "self help" section. You will still need a contractor if you are not a home builder or hold the correct license in your state. However, no sweat equity you have to pay yourself to do the work. Which if REI is your long term goal, you get paid 2times, to do the work and equity in the house. Win-Win is my thought.

There is a FHA and a conventional which the interest is about the same but the down payment is high for the conventional however it is more open to self help.

FHA: 3.75%

Conv: 5%

Credit score

FHA: 600

Conv: 640

Lots of paperwork, but worth it. If it was easy everyone would be doing it. 

Question for those that have dealt with the 203k loan. I currently own and operate a remodeling and home renovation company. Has anyone used a 203k loan and done any or all the repairs to the property as contractor+ homeowner using the funds from the loan?

I like deals. And I was in it again today. My figures were pretty close. Doesn't look like it will be much of a surprise on the end price. 

And I like the commercial idea. Anyone have a contact for a commercial loans in the Birmingham AL area?