All Forum Posts by: Katie Smith

Hi Tannia!

That's so exciting that you're diving into the rental property world! Have you had a chance to check out any local meetups or REIA (Real Estate Investors Association) events? They're a fantastic way to connect with local investors who can share their experiences and recommend trusted professionals they work with.

You’ll likely meet key members of your team at these events, including insurance agents, title companies, lenders, realtors, and even wholesalers. It’s a great way to build a strong network and build relationships!

Best of luck as you get started—let me know if there’s anything I can do to help!

Hi Gianfranco! 

I'd be happy to help here. I'm not a realtor, but I have a client who does a lot of deals in Jax, so I can ask them for some recommendations. How are you planning on funding the deal? Have you heard of a fix-and-flip loan? Lenders can generally lend you up to 90% of the purchase price and 100% of the rehab budget. It's definitely something worth looking into.

Hi Vincent!

As many have mentioned, most fix-and-flip loans allow lenders to fund up to 90% of the purchase price and 100% of the rehab costs, but they typically won't exceed 75% of the ARV.

However, If you're not including a rehab budget, lenders often cap the loan at around 70% of the purchase price, which might explain the situation you're encountering.

It’s generally more advantageous to include a portion of the rehab budget in the loan. Just be sure to choose a lender offering non-Dutch interest on the rehab funds, meaning you only pay interest on the rehab portion if you actually draw on it. This provides you with a safety net for any unexpected expenses during the rehab process while also potentially allowing you to secure higher leverage on the purchase price.

Hi Hunter,

It sounds like you've built a solid foundation in real estate with a variety of experiences—that’s awesome! Transitioning from construction equipment rentals into full-time real estate must have been a big step.

I can relate to your passion for finding deals and helping others reach their goals—it’s such a rewarding aspect of being in this industry. I'd love to connect if you or any clients are ever in need of financing for rentals or renovations!

Hi Chad! Nice way to house hack! What are you focusing on this year? More rentals or any fix & flips?

Hi Matt!

I’d suggest exploring a bridge loan that covers a portion of the purchase price along with 100% of the renovation costs. This type of loan can be a great short-term solution to help you acquire and improve the property before refinancing into a long-term loan or selling it for profit. Let me know if I can help!

Hi Frank!

Do you have an idea of the long-term rental amount, and would that be sufficient to meet the DSCR ratio needed to qualify for the loan? Is the current lender requiring a 1007 as part of the full appraisal? If so, the 1007 will provide a rental income estimate that could be used to structure the loan as a long-term rental rather than a short-term rental.

Hi Ricky!

Are you currently living in the property? If it's your primary residence, a HELOC could be a great option. If you're not occupying the property and plan to either sell it or keep it as a rental, you might want to consider a bridge loan through a hard money lender. This type of short-term loan can provide the funds needed to renovate the property. Once the renovations are complete, you could either refinance it into a long-term loan or list it for sale.

Happy to answer any further questions!

Hi Colin! Are you looking to sell a flip or are you in need of funding for a potential flip?

Hi Jorge,
It’s exciting that you’re considering a jump into 20+ units! Are you set on starting with a larger property, or would you be open to beginning with something smaller to build experience? Starting with a smaller property or a few fix-and-flip projects can help you build equity, gain credibility with lenders, and better understand the process before scaling up.

Securing funding for larger projects can be challenging without prior experience, but options like hard money loans might be worth exploring. They can be a great tool to get started, especially for flips. Have you thought about this approach or considered a phased plan to build up your portfolio? Happy to connect further!