All Forum Posts by: Kyle Winters

I am doing my first fix and flip loan where the lender sends me draws after work is done. My question is how do new investors front the initial money to start work if the point of the rehab loan is that they don’t have their own money to do renovation? My rehab will only be $10-20k, so I do have some funds to get it going, but is this typical of hard money lenders? Do you ask contractors to be paid after work is done? I’m gonna guess that answer is no, but just wondering how this would work with a larger rehab.

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Saint Louis, Missouri

I did not. They were giving me a very small HELOC that wouldn't have been beneficial. I went with a local credit union in my area and got 90% of the equity in my house to use.

1 Vote

Quote from @Dave Foster:

@Kyle Winters, Not sure if we talked about this. When we talked I only took notes on one sale. But if you're selling two properties there's a gem of a hidden opportunity for a BRRR investor.

You'll be doing 2 1031 exchanges. But you can combine them into purchases allocated the proceeds any way you want. This can really boost the amount of money you get out of a refinance. And cut your mortgage costs significantly.

Instead of doing a simple purchase with financing on both, Buy one replacement for cash or minimum mortgage. and buy the other one with maximum leverage. The one with a low mortgage is the one you'll refinance after value add. Buy putting more cash into it you'll get more cash back. And the other one will have little cash so you won't need to refinance quickly and pay those mortgage costs again in a short amount of time.

Thank you for this comment. Hopefully, I can get this to work out.

1 Vote

Hammond, Indiana

I'm going to be selling 1, maybe 2, single family homes that I have some decent equity in and 1031 each. One might net me $75k to use, and the other would be around $65k. I'm looking to do my first BRRRR's as I have good property management who has access to a good contractor.

I know all the rules of a 1031 and have already found a company to do it. What are some lesser known things that I may need to watch out for or be aware of in this process?

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Hammond, Indiana

Quote from @Aaron Byrne:

That is not my experience. Whenever we complete a "mail-away" close where the buyer or seller is out of state relative to the subject property, the party who needs to sign meets with a notary in their respective area, not a notary local to the county in which the subject property resides. There are many nuances between counties, so I would encourage you to enlist the help of a local title company in Indiana and ask them this question. They are your friend. As a general answer based off my personal experience, I recently closed a transaction for a property in Marion County, Indiana where the buyer lived and signed docs in Hawaii. The title company recorded the docs without issue, even though our documents contained the seal from a notary public in Hawaii.

Hope that helps!

Thank you for the great advice!

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I have an out of state rental property in Indiana that is in my personal name. I am needing to do a Quit Claim Deed to transfer it to my LLC. The form is saying that I need a notary in the county of that state. Do I just need to find a notary in that area who will notarize the document, then send it back to me? I imagine there has to be an easier way than driving 7 hours to get a notary signature for this.

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I am wanting to get the opinions of others who have used Figure Lending recently. I have about $125,000 in equity in my primary residence, $85,000 in equity in my 2nd SFH rental, and about $70,000 in equity in my 1st SFH rental. I've used a HELOC from my primary residence to buy my 1st rental, but I'm trying to get capital to buy a BRRR property with cash.

I am self-employed for less than 2 years, so I can't qualify for conventional financing, so wanted to get others experiences with Figure Lending.

I am also open to any other options, I might not be thinking of. I'm looking to use only my funds for this first BRRR and would consider private funding in the future, so that I can show experience.

Thanks in advance for all answers!

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All Forum Posts by: Kyle Winters

Kyle Winters has started 4 posts and replied 7 times.

Post: Hard Money Loan Draws

Post: Reviews of Figure Lending, LLC

Post: 1031 into BRRRR (what to be aware of)

Post: 1031 into BRRRR (what to be aware of)

Post: Quit Claim Deed from Personal to LLC

Post: Quit Claim Deed from Personal to LLC

Post: Reviews of Figure Lending, LLC