All Forum Posts by: Josh Longtin

I am researching a hard money funded deal. Found my property but have yet to make an offer. I will show my inexperience here but have to ask...I’m finding most lenders will only consider applications or quote rates on applications if the property is under contract. How can I make an offer on a deal and get it under contract without calculating the terms of the loan into my budget?? No loan without deal, no deal without loan... please advise!!

@Steven Picker. Awesome. Thank you

@Michael Kinsella

It certainly does. Thanks a million

@Lien Vuong

I do have some cash aside for hml. Im curious as to what percentage the lender requires.

In regards to ARV, I have factored in current home values in this neighborhood, city assessors, comparable recent sales in the neighborhood, price per sf, and a few recommendations from some agent acquaintances.

One other question I meant to ask, is obviously most lenders require a complete scope of work with detailed bids from insured GC. How do I handle this if I am essentially acting as the GC? I will have plumber, electrician, plasterer, etc working on the project, (all of which I have existing, long term relationships with)but I do not intend to bid this out to a one man gc.

Thanks so much for your reply👍

After a couple of years of reading, listening, calculating deal after deal scenarios, I am ready to make my jump. I have found a property that I believe to be a profitable, and manageable first venture for me.

Short version is, the SFR was purchased by a family member last year to avoid foreclosure. Owner spent a good chunk of change on beginning to rehab the property before having a fallout with the contractor. The rehab is 60% complete, and there is roughly 8k worth of material left on site as part of the deal.

She is now looking to cut her losses.

Asking 140k. My gut is to offer 120, and cap at 130. My itemized rehab budget is 26k. I would aim for a 6 month turn on this deal.

Lots of sweat equity necessary, but no big ticket items. In fact, the majority of work would be done by myself and a close friend who is a GC. Ultimately all in for 160k, list for 239k as that is what comps are in that neighborhood.

I have a little cash, but not likely to get a great deal on a traditional mortgage. I am strongly considering hard money on this project. Does anyone have any insight or advice? I am located in central massachusetts and would prefer a local lender.

Please and thanks!!

@Charlie MacPherson

Haha. Sounds about right. Welcome to Massachusetts.

I am roughly 200 feet from a small stream so water table could be an issue. I have a guy headed out to look at the site tomorrow.

@Josh Longtin

I think I found my answer. I am doing business in the wonderful state of Massachusetts where title 5 taxes make things quite a bit different.

I found my first flip property. Will likely need a ton of elbow grease and some cosmetics, but I love the deal. Love it.

Will require a 3 bedroom septic system. (Home is 1150 sq ft.) Anything I have ever heard or been told, I am safely looking at 25-30k for septic install. (Property has a cesspool now which needs to be changed over to septic, so its a start to finish install)

Someone just sent me 2 articles (one of which from zillow) claiming that from design to install, a new septic should cost you between 4-8k.

Thats quite a big difference.

I initially planned to budget on the 30k as it still leaves plenty of meat on the bone for my plan. Anyone have any first hand experience with this before I hire a guy to come survey the lot??

Help! And Thanks!!

Super helpful. Thank you so much. It looks like the private investor route is going to be my best bet here. Ill keep you posted👍

My wife and I have found the deal we have been waiting patiently for. Ultimately, we would like to use her IRA to fund the deal (flip). Has anyone had experience doing this? I am not familiar with the legality and tax position we would be in. (We are in MA)

How would this be different than fundraising with a private investors IRA?

Thanks in advance.