All Forum Posts by: Kevin Reinell

@Jake Wiley thanks! So when I roll up my total ask to the lender do I include what I calculate for carrying costs for the duration of the project, and then essentially pay the carrying costs out of the loan disbursement? Is my understanding correct?

@Jonathan Taylor thanks for your response! So as I understand it, the carrying costs for the duration of the project should be included as part of your ask to the lender, and included in the total loan amount? So essentially you would be using loan proceeds to pay for the carrying costs as well? Is my understanding correct? Thanks!

I have a partner that I am taking down a STR with and we are planning to use hard money to fund purchase + rehab, exit out through a refinance most likely. My question is how do flippers or others experienced with BRRRR handle the heavy interest + carrying costs during the time of rehab? Is that expected to all come out of our cash reserves? Or are there other strategies for handling the hefty monthly carrying costs (interest, taxes, utilities etc.)

Curious to see how others handle this.

Thanks!

Looking for wholesalers doing deals remotely-

How are you handling showings once property is under contract with multiple cash buyers wanting to walk through the property?

Do you bring in someone locally to bring buyers through and show the house? What do you tell the seller about the showings?

Thanks in advance!

@Duncan Hayes Thanks, and if we did it the other way and named both of us on the contract with the seller, assigned the contract to end buyer and went to closing, that would work as well, correct?

@Duncan Hayes thanks for the response. In this case it’s a situation you describe where it’s a seller finance deal on a multi family with some light repairs needed. In looking for an end buyer I found a local partner in the market who wants to split the assignment fee with me 50/50 if he brings the buyer. Is there any issue with this? Does my partner who I’m splitting the assignment fee with then need to be on original contract with seller?

This is my first wholesale so want to make sure I do it right. Thanks!

@Jesse LeBlanc yeah exactly how it would work on a cash deal, right. In that structure you would just tell them the purchase price, and I guess once they see the original contract they can do the math. But wasn’t sure how it works on a seller finance deal. I guess I just have to tell the buyer straight up this is the fee for assignment?

If the only way to hide it is a double close. Then I’ll likely be straightforward with end buyer and tell them the fee. Agree that if it’s not life changing assignment fee then buyer should be okay with paying the average fee like 10-20k.

I have a seller finance deal in contract that I want to assign, I have an end buyer that is asking how much my assignment fee will be. Do you disclose assignment fees on a seller finance deal?

@Will Barnard

Thanks, this about sums it up directly. They take advantage of the ignorance of the Seller who doesn’t know any better and is desperate to sell, which I always knew, and any seller who is more savvy isn’t a good wholesale lead.

For the record, I am not a wholesaler, I own rentals, was just curious about certain mechanics of it.