All Forum Posts by: Kevin M Finley

Not nearly enough margin for me or literally any lender. I cut off my local deals at $20k profit... but mine are usually $60-80k acquisition and 150-199k ARV.

you're better off passing on "deals' than forcing a deal. Making no money sucks. 

Networking is integral. I've now bought 3 properties and have 2 joint ventures going with investors I've met at networking events. It doesn't matter if it costs money or not. If you are savvy and aggressive and willing to put in work, you'll grow. 

Just my take. 

Hi Andrew. I sent you a PM a few minutes ago. 

Update: 

Unfortunately the loan estimate and terms did not work out, so I went with a private money lender. 

Originally I ran my numbers on the terms advertised, but apparently they decided they could only give me 60% ARV, and the ARV they calculated was around 15% lower than mine, so the amount of cash I needed to tie up in the deal was not worth it.

Positives: Extremely fast response time. Fast estimates. Clear and concise terms. Quick closings. 

Personally, that doesn't work for my numbers but I am also in a totally different market. Working with private money lenders that fund 100% with upfront rehab money helps me much better than dealing with draw processes and fees etc. 

A few points- Your HM estimate seems low. 180 days interest at $157500 loan amount is $7100. $3150 in origination as well. Your draw fees (~$150 per) and doc prep etc will probably push it closer to $13-14,000.

You'll need to have: 

-$17,500 down payment

-$3150 origination 

-$800-2500 closing costs (you didn't specify)

-$1500 utilities 

-$10-15k upfront for your renovations (assuming it's a reimbursement deal) 

Personally, $35,000 is a lot to have out on a deal at any one time, but ultimately it's all about your tolerance of risk. Build a 20% contingency into your budget in case your furnace craps out or your contractor decides to get squirrely 

I would do the deck built over top. This is very common (at least around here). You're looking at around $750 in materials and hopefully only 8-10 hours of labor. It'll be over budget but more effective than demo and re-build

 Hi Sam. I am one of the organizers of KRREIA. I would encourage you to check out our monthly meetings as well as the WISCOREIA monthly meetings, both held in Kenosha. 

https://www.facebook.com/groups/1892119737699944/

https://www.facebook.com/wiscoreia/

Thank you for the responses guys. Any specific lender suggestions to call? I understand it's a decision to make but I'd like to have the entire picture before I make it. 

You can spend anywhere from $.89/ft to $4/ft for investor grade LVP. There are a ton of options out there. I'm trying out the Sams Club LVP that is $1.49/ft right now. It seems to be much higher quality than any of the other similarly priced options, and has a nice locking system and backer foam. 

By ARV I mean appraised value. 75% LTV.

Closing 1/21 with hard money and looking refi as soon as I can. Value is $129k