All Forum Posts by: Ken T.

Hello BP Fam! I need a referral for a cash out refi lender.

Project details:

This Redwood City home was purchased from seller who was facing foreclosure, divorce, bad tenants, and dilapidated house. We negotiated the price down to $1m. We put in $300k to put in 6 bedrooms and 8 baths. Each unit has private bathroom and is renting for $1600-1800 a month. The home is worth about $2.2m!

My challenge is now I am having a difficult time finding a lender who can cash out refi this investment property. Does anyone have experience with a lender who can help me pay back my lenders :P

up

FSBO: 13400 Kings Ln, Clearlake CA

Price: $80,000

Remaining construction cost: $25-40,000

ARV: $185-$200,000 (add 2nd bath for max ARV)

Contact Ken: (408) 221-7565 | [email protected]

https://www.zillow.com/homedetails/13400-Kings-Ln-Clearlake-Park-CA-95424/19091570_zpid/

My focus area is in the Bay Area. My marketing gets leads from far up north. If someone wants to take on a small and cheap project feel free to contact me!

@Albert Bui Thank you very much! That's very insightful. 

Should I be lending under a corporation or would as an individual suffice? Considering it's lending and the liability is not on the lender's shoulders I figured it won't really matter. 

@Albert Bui Wow that was very informative! I will definitely look into both right away. 

I'll steer clear of Chase for the HELOC. Sounds like the strategy I should take for my scenario would be:

1) Refi the rental

2) Take over this flipper's loan as 1st position lender

3) Repay the refi loan upon disbursement 

4) Attain a HELOC

5) Fund the next acquisition with the HELOC

6) Refi the same rental

7) Pay off HELOC

8) Pay off refi loan upon disbursement

Am I missing anything here? 

Hello BP!

My family and I have three properties (1 primary, 2 rental) held in one family trust. They trust my methods and are allowing me to leverage the equity to invest in real estate.

1) Primary property was purchased about 5 years ago for $700k with market value up to $1.4m.

2) 1st rental property was purchased about 5 years ago for $300k, current market value is about $800k if rehabbed to sell. Loan balance about $200k

3) 2nd rental property was purchased 25 years ago. Current market value is about $1m, should have very little/low loan balance.

My parents are allowing me to tap into one of the properties to fund my fix and flips, new rental acquisitions or private lending. How could I go about this to maximize the opportunity? I did some research online and just came out a bit more confused than going in. 

Possible scenario:

I have a friend who is currently funding a flip with hard money, 2 pts @ 10%. They would be open to replacing that loan with a more favorable loan from me. How would go about structuring their loan replacement? I want to be careful and not make any mistakes with my family's money.

Questions:

Should I be looking to refi or a HELOC?

Is it possible to get a HELOC against a rental property? From what a Chase Bk rep told me, this is a no.

Should I use this equity from private lending for other people's flips or should I be purchasing properties in my own name? 

What else am I missing before I dive head first with other people's money?

Thanks for all the info guys. 

I will hire the GC for the work that requires permitting I'll leave the tiny tasks to the handymen, limit them to only the finishes. I am learning how GCs work so that the next project I can be less reliant on them. 

We start this week!

Hello BP, it's been quite some time since I have posted. I finally have a project I'm working on! 

I have a project in San Francisco CA but the general contractors charge so much. I have a few questions as a first time rehabber... 

About the project: It is a SF property that is permitted for a full renovation of the existing living space and a garage/basement conversion. I will have a GC take care of the "major" things (I don't really know what is considered major).

I looked all over the internet but cannot get a good grasp on my questions. My questions are...

1) What can a handyman do instead of a licensed contractor?

2) Can a handyman do projects that require building permits?

3) Anything else I should know about using a handyman?

Thank you in advance!

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Jennifer has an expert background in business development, financial strategy, and leadership. Jennifer and her husband Josh owns a cleaning business and a multi-million dollar self-storage business in downtown Redwood City, that they purchased in 2005. They also own rental properties in Burlingame, CA and Memphis, TN. With a shared passion for business and real estate investing, Jennifer & Josh created The Tailwind Group, LLC, which offers a package of real estate services, including renovating dilapidated properties and buying non-performing real estate bank notes. They work in collaboration with real estate agents, contractors, private lenders, as well as note holders to create a diverse stream of real estate income

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2:00PM-4:00PM

Santa Clara County Association Of Realtors- 1651 N 1st St. San Jose, CA. 95112

5:30PM-9:00PM - Hot July Mixer

M8TRIX - 1887 Matrix Blvd. San Jose, CA. 95110

Our private mixer following the event will be a great opportunity to learn from and network with our special guests!

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@Account Closed I really appreciate you giving me your perspective. Advice based on success and failures, a great free lesson for all BPers.

With all factors considered, is there a middle ground that can be negotiated here to make a deal out of the given scenario?