All Forum Posts by: Matthew Johnson

@Heather McNicol when you say the program is expensive, can I ask how much the program costs?

I have a coworker who is looking to sell a distressed Cabin Rental in Nashville TN.

It needs about $20-$25k in repairs to get it to rent out the way it should.

the ARV on the property is around $300k if we were to sell it.

There is a property management company on site that handles booking the rentals, schedules cleanings, etc.

They do not cover water, gas, electic, or PITI.

currently the property is bringing in about $3600 per month gross profit. 

I'm wondering what things i should look out for in a deal like this?

also, the current owner of the cabin is saying these require a special type of loan and cannot be done with conventional financing?

can any lenders give me some insight on what type of loan i need to be looking for?

 do you have any connections for lenders who specialize in these types of loans? if so that would be extremely helpful!

thanks!

I have found a property that has an ARV of around $200k. Purchase price of $80k and about $40k in rehab.

I am looking to use a hard money lender who will allow up to 75% ARV and 100% of the repairs.

I am curious how the cash to close on a deal like this will work considering that 75% of $200k is $150k and i only need about $120k for acquisition and repairs on the property. 

Will some hard money lenders cover the whole cost of purchase and rehab where i am only covering a few thousand in closing costs?

will they only cover a certain percentage of the purchase price and closing costs, so i will need to have some more skin in the game?

also, when refinancing the property to a conventional loan, will i then be able to pull out $150k, pay back hard money of $120k and walk away with some extra cash for the next deal?

@Adam Craig I agree with those who are saying to paint the brick. I feel like by painting the brick it will give it a more up to date feel and better curb appeal!

I can not qualify for a long term loan until March of 2020 since my debt to income will be too high. I will have 2 years of commission under my belt at this point and will be able to qualify for conventional financing. I want to get into a deal before this time. I am thinking of doing two things:

1- fix and flip: I could use a hard money lender or private lender

2-buy and hold property. I would use a hard money lender to get the rehab and acquisition of the property. But I cannot refinance out of the short term money until March 2020.

I want to know what suggestions others have to get buy and hold properties sooner than later considering my debt to income will be above 48% until March?

 Thank you for that. That is kind of what I assumed. It’s our first deal together and we are looking at having more deals down the road since he has the ability to fund and I have the time to find the deals, run numbers, manage rehab, etc.

I have a deal i have brought to a potential partner who would be providing the funding. During the initial purchase and rehab, we would still be using a hard money lender as he does not have the capital available to buy the property outright and cover the funding of the repairs. his initial investment on the property would only be around $7500. After refinancing and putting the deal into a conventional loan, the property would be cashflow positive around $180 per month and he would be able to get his money back out of the deal completely. We would both then have $0 in the deal after refinancing. My question is what percentage equity is fair in a deal like this? all he is doing is bringing the funding then getting all of his money back out a few months later. How would you recommend structuring this deal in a partnership?

looking for some feedback on this deal i am looking at from a wholesaler. any advice is appreciated!

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