All Forum Posts by: Matthew M.

I HAVE A PROPERTY UNDER CONTRACT IN BONAIRE, GA. I AM IN THE PROCESS OF FINANCING THE DEAL AND AM HAVING A HARD TIME GETTING MY FOOT IN THE DOOR BEING A NEW BUSINESS AND ALL.

THIS CAN BE EITHER: 

FIX N FLIP (LIGHT TO MODERATE)

OR

WHOLE-TAIL (TAKE OFF MARKET PROPERTY AND PUT ON THE MLS WITHOUT DOING ANY RENOVATIONS)

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THE NUMBERS:

ARV: 225K - 240K

PURCHASE: 130K

RENOVATIONS: 25-30K

APPRAISED VALUE: 191K

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THE PROPERTY:

4 BED

3.5 BATH

2,150 SQFT

.87 ACRES

ATTACHED GARAGE / WRAP AROUND PORCH

SOLID ROOF AND FOUNDATION

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HOW SHOULD I GO ABOUT GETTING THIS DEAL DONE SO THAT I BUILD A TRUSTED WORKING RELATIONSHIP FOR THE REST OF MY UP-COMING PROJECTS. 

I HAVE BEEN A GENERAL CONTRACTOR FOR 10+ YEARS. (FIRST FLIP. NOT FIRST CONSTRUCTION PROJECT).

THANK YOU!

Cash out refinance. Or flip

What is the best way to fund a fix n flip deal with OPM? Hard Money loan and Commercial loan? BOTH? As well as the need for working Capital, business expenses and equipment? 

Hi I have an Out of state property that I need to close on fast within the next few days or at least have the funds readily available to extend the Closing Date. We will then put just enough money into the property " light to moderate rehab" carpet, paint, minor updates in kitchen and bath, cleaning, professional photos, staging, and re-listing property of the OFF market property onto the MLS.

1) What is the best way to get funding for the entire property and closing cost including fees, and money for rehab? 

My thoughts are to pull out a hard-money loan for the property which will cover 80% or so of the entire deal. And then pull out a Commercial loan of 100K to be split into 5 separate flip n fix properties.

Example Scenario: Property Cost 100K

Hard Money loan covers 80% and we still need funding for the remaining 20%.

For the remaining 20% we pull out another loan. A commercial loan for 100k that we can split into 5 separate future deals to cover the 20% needed on each property. And continue to pull out a Hard Money loan each time we start a new fix n flip deal that will cover the 80% each time.

Is this the correct way to go about this? To get 100% funding to make the first deal happen and then leave enough room for the rest of the deals? 

2) Also the company plans on expanding and will need money for working capital, Equipment cost,  and other expenses. So we will need to pull another loan out specifically for that? I just wanted to run this by some of you guys on here to make sure I'm going about this correctly, and to see what thoughts you have on securing the proper funds to operate smoothly and efficiently.

FIRST TIME - A LITTLE HELP

ARV: $225 K

Applicants Name: ( BLANK )

Property Address: GEORGIA ( 31005 )

Broker Name: N/A

Loan Type: Pur/Rehab

Units: 1

Purchase Price: $130,000.00

Amount Owed: $0.00

Rehab Bid (110%): $22,000.00

As Is Value: $0.00

After Repair Value (ARV): $225,000.00

Credit Score: 720

Experience: 0

Broker Fee: 0.0%

Loan Amount: $139,000.00

Loan To Value (LTV): 61.78%

Interest Rate: 11.99%

Origination Points: 2.50%

Term In Months: 24

Monthly Payment: $1,388.84

Cash to Close $16,475.00

Broker Fee: $0.00

Closing Cost: TBD

SINGLE FAMILY

REDFIN CURRENT VALUE RIGHT NOW: $172,762

4 BEDROOMS

3.5 BATHROOMS

2,150 SQ. FT

.83 ACRES

BUILT 1977

GAME PLAN #1: DONT USE ANY OF THE REPAIR COST MONEY AND JUST THE TRANSACTIONAL FUNDING TO BUY THE PROPERTY OFF MARKET AND RE-LIST ON THE MLS AFTER DOING A DEEP CLEANING, PROFESSIONAL PHOTOS, STAGING, LET THE MARKET DRIVE THE PRICE UP

GAME PLAN #2: USE THE REHAB MONEY OF 22K AND UPDATE THE BATHS A BIT, KITCHEN A BIT, CARPET, PAINT, PROFESSIONAL PHOTOS, STAGING, LIST ON MLS AND ALLOW THE MARKET TO DRIVE THE PRICE UP

GAME PLAN #3: BRRRR

ALSO I'M NOT TRYING TO GET A BUNCH OF PRIVATE MONEY FUNDERS AT ONCE. BUT I WOULD LIKE AN OPINION IF THERE IS A BETTER LOAN OPTION FOR THIS KIND OF DEAL WITHOUT ANY PERSONAL CREDIT CHECK.

ALSO WE DONT NEED THE LOAN FOR 24 MONTHS JUST 2 TOPS

PLEASE BREAK IT DOWN IF YOU CAN PLEASE

ALSO I WOULD ONLY BE TAKING THE LOAN OUT FOR 2 MONTHS NOT 24 MONTHS

ARV: $225 K

Applicants Name: ( BLANK )

Property Address:  GEORGIA ( 31005 )

Broker Name: N/A

Loan Type: Pur/Rehab

Units: 1

Purchase Price: $130,000.00

Amount Owed: $0.00

Rehab Bid (110%): $22,000.00

As Is Value: $0.00

After Repair Value (ARV): $225,000.00

Credit Score: 720

Experience: 0

Broker Fee: 0.0%

Loan Amount: $139,000.00

Loan To Value (LTV): 61.78%

Interest Rate: 11.99%

Origination Points: 2.50%

Term In Months: 24

Monthly Payment: $1,388.84

Cash to Close $16,475.00

Broker Fee: $0.00

Closing Cost: TBD

SINGLE FAMILY

REDFIN CURRENT VALUE RIGHT NOW: $172,762

4 BEDROOMS

3.5 BATHROOMS

2,150 SQ. FT

.83 ACRES

BUILT 1977 

GAME PLAN #1: DONT USE ANY OF THE REPAIR COST MONEY AND JUST THE TRANSACTIONAL FUNDING TO BUY THE PROPERTY OFF MARKET AND RE-LIST ON THE MLS AFTER DOING A DEEP CLEANING, PROFESSIONAL PHOTOS, STAGING, LET THE MARKET DRIVE THE PRICE UP

GAME PLAN #2: USE THE REHAB MONEY OF 22K AND UPDATE THE BATHS A BIT, KITCHEN A BIT, CARPET, PAINT, PROFESSIONAL PHOTOS, STAGING, LIST ON MLS AND ALLOW THE MARKET TO DRIVE THE PRICE UP

GAME PLAN #3: BRRRR

ALSO I'M NOT TRYING TO GET A BUNCH OF PRIVATE MONEY FUNDERS AT ONCE. BUT I WOULD LIKE AN OPINION IF THERE IS A BETTER LOAN OPTION FOR THIS KIND OF DEAL WITHOUT ANY PERSONAL CREDIT CHECK.

PLEASE BREAK IT DOWN IF YOU CAN PLEASE 

I have a property you might be interested in. Please Direct Message me on here. 

Today I had a Georgia property ready to close with an assignment FEE. The END buyer said they could close on the deal fast because I told them the closing deadline is July 26th of 2021. 4 days went by and then they tried to do a double closing. Title contacted me, the seller, and the so called "END BUYER" / FLIPPER." They said that they couldn't do the transaction because of it being assigned and double closed at the same time. Now I only have 5 days to get the deal completely done. Any thoughts?? Wisdom?? Ideas?? how to get this deal taken care of fast. Thanks for any responses ahead of time. I think this should be posted on here anyways to help new investors for signs to watch out for when delivering the deal to the end. 

I’m trying to find other wholesalers and other investors to Joint Venture with. I’m concentrating on just disposition. Does anyone have good ideas / strategies to reach out to them and get the ball rolling??

Thanks again