All Forum Posts by: Manuel Angeles

90% Purchase + 100% Rehab Costs Financing

And 100% Purchase + Rehab Costs Financing with Joint Venture, 50-50 Net Equity Profit Split

www.fundingwarehouse.com

Structured

1st TD: 80-90% Purchase + 100% Rehab
2nd TD: 10-20% Purchase Gap with Equity

This is a property, newly listed, funded 100% Purchase & Rehab with Joint Venture:

https://youtu.be/kTpA3Y2A8gY

https://vimeo.com/240727505

308 Holmwood Newport Beach, CA 92663 

$1,850,000 Price 

4 Beds 3 Baths

2,406 Sq. Ft

Located in the prestigious ‘Newport Heights’ community, this freshly remodeled and relandscaped 4 bedroom, 3 bath home offers gorgeous blue-ocean views. The home's light, bright, modern-traditional design welcomes the new owner to the best of Coastal Orange County living. The home’s unique appointment on the hillside offers a high level of privacy while still keeping an open, airy feeling inside. The home’s location is less than 1500 feet from Historic Newport Harbor, Pacific Coast Highway and “A-Market”. Shopping, dining and entertainment are also very close to this ideally located property. Marble steps welcome the owner and guests to an elevated front entry and a 3 car garage is off of the alley behind the home. The living room features ocean views, a beautiful black-venetian-plaster gas fireplace as well as glass bifold sliders that open up to a newly built deck, herb garden and built in BBQ with fridge. This home was remodeled using only the finest materials and craftsmanship, from the brushed marble entryway, to the chefs kitchen, appointed with all brand new stainless-steel appliances, including “Sub-Zero” fridge, “Wolf” range, Thermador oven & wine cooler. Calcutta classic quartz counter tops and travertine kitchen floors complete the styling. All bathrooms feature Arabescato Carrara marble and Roman vein cut travertine. To have a completely remodeled, ocean-view home with a 3 car garage in Newport Heights is a rarity, especially at this price.

Listed with Carter Kaufman, Keller Williams Pacific Estate, Kase Real Estate www.carterkaufman.com www.kaserealestate.com

If you had $1m...

Would you rather

1. LEND IT
at 7% interest 1st TDs or 15% 2nd TD with equity, or whatever you have agreed with the Borrower

or 

2. LEVERAGE IT
And use portions of the $1m as down payments to acquire other properties 

Ex: $500k as a 25% down payment on a $2m commercial property that you'll reposition, add value, up to $500k net profit

or

3. LEND IT AND LEVERAGE IT

Lend it to a Borrower who will then leverage it to buy the $2m property

or

4. Buy a Bugatti

or 

5. Bet it all on one hand at the Blackjack table at Monte Carlo in Monaco 

One of our Clients has a home to sell in Hialeah FL

8 bedroom, 7 bath, 4500sf... It would be a great for Assisted Living Facility.

Our Client is selling the property for $649,997.

xoxo E 56th St, Hialeah, FL 33013

I can send you the full package.

Message me, or comment with your email address.

We would be able to fund 80-90% of Purchase Price, depending on Borrower's Strength (Financials and Experience)

.

.

Get More Properties

www.propertieswithprosperity.com

There are many lenders who can provide up to 90% of Costs. To close, you'd need 10% down, and capital to service the debt (i.e. points, interest payments, closing costs).

If you Do Not Have Capital to bring into the acquisition, bring in a partner who trusts you well enough to lend the 10% + holding costs... provided that you pay Interest or Have Equity Shares
Or you can find a special type of hard money lender, called "Gap Funders" 

Who are good Commercial & Residential Real Estate Lenders that do not require PGs ? And do not run credit ? And can lend up to 75-80% LTV... Do they even exist ?

What about Lenders that allow seller carry back of the full down payment ? (Ex. Seller can carry 35%, and Borrower is seeking 65% LTV)

Many people come to us seeking those type of loans. Who can/should I direct them to ??? 

The last thing you want to do is pay a Lender Up Front Fees, unless its for an Appraisal.

You can search "DO HARD MONEY" here on the Bigger Pockets search bar, and you'll find a lot of posts reviewing their experience with DO HARD MONEY.

Scotsman Guide has a great resources.. you can search which lenders lend in your states, and up to what %LTC / %ARV, their parameters, etc..

Those are darn-tootin good terms for 100% finance, even if you are having to bring the rehab costs out of pocket. 

Use the 10% loan for the acquisition. Then reposition the properties, adding value. Once stabilized, refinance out your original lender. Note, that most Take-Out lenders will typically lend up to 75% LTV. So you're initial acquisition loan should not exceed 75% of ARV.

This is a good strategy, especially if you're working with Commercial Properties. After you increase the values of the property, you can refi it at the new stabilized value. Once you refinance, you can pull cash out tax-free.

Rehab funds are typically held back in escrow and released through fund control . Ideally, you'd want to put in a 10-20% Contingency.