All Forum Posts by: Junior Francica

Rates: 10% to 14% (Most Deals are 12%)
Terms: 1 Day - 24 Months (Most Deals are 6 months)
Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))
Minimum Loan Amount: $50,000 (For loans less than $200,000 we charge $2,500 minimum)
Max Loan: 65% of After Repair Value(ARV)
100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)
Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)
We have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VT, VA, WA, WV, WI, WY.
NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

I will send you a message.

0 Votes

Quote from @Hamp Lee III:

Congrats to you!

I wish you all the best.

thanks

0 Votes

Hello all, I am looking for a hard money lender to fund our current deal. The current HML we use cannot do in a city under 10k population and we are looking to do a flip in Trenton, GA. We have the home under contract.
purchase price: 86k

rehab cost: 110k

ARV: 285k

If you need any other info please message me.

Thank you.

2 Votes

Quote from @Account Closed:

Quote from @Junior Francica:

Also to clarify, I will be getting hard money loan for purchase and rehab and the "lender" (second party) will pay for the hard money and fees so not sure they could have 1st position as hard money lender would have that position on loan.

The hard money loan (HML lender) will be in first position. If you have another party paying for the loan payments, they would be in second position.
What you are contemplating isn't a normal arrangement, but done correctly should work.

Normally you would borrow from the HML (who would be in 1st position) in your entities name and make the payments from cash on hand.

Since oftentimes, fix & flips go over budget and take longer than anticipated to sell, make plans for that in your financing and contracts.

yep have already learned that over budget and longer than anticipated is what happens but a lot of lessons learned for flips moving forward. Thanks for your input.

0 Votes

Quote from @Alan F.:

Quote from @Junior Francica:

To answer the 1st question re; lender agreement, yes & drafted appropriately.

2nd question; I've never structured a deal where a lender covers a lender. I'm not seeing the value in such a deal. Maybe more experienced investors than myself will add value here.

IMO all business deals are well outlined mutually beneficial contractual agreements.

Thank you.

The value from my viewpoint is being in the deal with no money down. This first flip that I am in after HML fees, closing costs, interest and so on we will probably be all in around 35k.Which came out of my pocket. This second deal if we get a lender to fund the second position lets say same as first flip with 35k, we would be able to fund the purchase and rehab with with HML and then pay all fees and interest, closing costs and so on with second lender and at closing everyone gets paid back but we used no money out of pocket for the deal. We also had people reach out to us after social media posts asking if they could give us money for our next flip and that's what I came up with, I thought that was normal practice.

0 Votes

Gotcha, thank you for clarifying the lender vs JV. So if they are just the "lender", is there an agreement required there? ( I would assume yes?).

0 Votes

Hey everyone any advice or experience would be appreciated. After starting out first flip we had people approach us wanting to give us money for our next flip. We have identified our next flip and want to figure out an agreement with the money investors would that be a JV agreement?

They want to give us the money to pay the hard money lender fees, interest, closing costs, and anything else and we find the deal, do the work, and then after selling it (I am an agent) we will give them interest on their money.

My question is, what type of agreement should we have in place with them? Does anyone want to share any agreement you go off of? also what is a good return to offer them on their money? I was thinking 15-20%? Thank you guys

0 Votes

Thank you everyone for the input and help!

0 Votes

Quote from @Bob Stevens:

Quote from @Junior Francica:

Hello everyone, made a post on here already about doing my first flip so wont get into the details about it.

Something that I have been trying to figure out or learn is, what are my options with what to do with profit from the flip in terms of taxes.

How much of the profit will be due on my taxes (generally speaking)?

Is there something I can do with the profit to not pay taxes on it? would a 1031 apply and be an option?

Any help or direction would be greatly appreciated. Thanks!

What to do, buy another, and talk with your accountant. Also KEEP some for rentals. Do not flip them all, Wealth is built not flipped. Biggest mistake I made of my life, not keeping 50 or so of the 500 I flipped, cost me millions,

Definitely something I want to do, thanks for the reminder.

0 Votes

All Forum Posts by: Junior Francica

Junior Francica has started 7 posts and replied 36 times.

Post: Looking for Hard Money Lenders

Post: Looking for Hard Money Lenders

Post: Looking for Hard Money Lenders

Post: Advice on agreement with money investors on fix and flip

Post: Advice on agreement with money investors on fix and flip

Post: Advice on agreement with money investors on fix and flip

Post: Advice on agreement with money investors on fix and flip

Post: Advice on agreement with money investors on fix and flip

Post: First Flip, what to do with profit from flip?

Post: First Flip, what to do with profit from flip?