All Forum Posts by: Matthew Louks

Welcome,

I am an agent and investor in the St.Louis area as well. I have been pretty passive over the last few years, but should be ramping up very fast in 2017. Definitely looking for new properties now. I'd love to connect with you and anyone else active in the area. 

Thanks, @Mike H., I have considered hard money, but it does come with the risk of not being able to refinance. This is my only concern with going that route. And the fact that I have no hard money connections in my area thus far. 

@Jassem A. Thanks for your input, but you are veering off topic. I have the numbers worked out. Just not the funding. This is not a carpet and paint kind of property, there are serious mechanical and structural issues that cannot be deferred to a later date. I can only cut about 7k off of the reno by postponing until later, which still doesn't help my situation. 

@Jassem A. I have not found any banks that will do equity loans or lines of credit on rentals. The only exception being an asset based line of credit. The main problem with the ones I have found is the high interest, amazing amounts of information required and, from what I know, have a slim level of approval and a long lead time. I am buying this home to help my sister out, who is going through a divorce and has had her finances and credit destroyed by her ex, so living in it is not an option. Plus the tax implications of moving out of my home that I have had less than 1 year. My business partner and I have been in the construction field for years, so doing most of the work is in our wheelhouse already. The 45k in repairs accounts for that as well. 

Being short on capital and need cash or financing asap. Please help me figure out my best options. My primary residence was just refinanced with 80% LTV, worth 144k, note for 115k. I have a duplex rental worth about 170k with a 123k note. I also have a flip that I owe 40k on through owner finance on contract for deed, and is worth 125k. It is currently listed and has only been on the market for 2 weeks. I currently have 37k in cash between my business partner and I.

We are trying to buy a property and need to move fast as our market is heating up quite fast. We have an offer in on a homepath home and have been countering back and forth. We are going to end up paying between 42-45k for the property and 2k in closing. There is also the need of having 45k in renovations to be done. We are a new startup and most banks do not want to lend to us. We are looking to rent this home out when done and do a cash out refi after 6 months. 

As a startup with minimal history beyond buying and not yet selling our first flip, what might our options be to finance this deal. I'm positive that we would be able to find the remaining cash for acquisition, however the rehab is another question. Our private investor is not interested in loaning on this project as it is a buy and hold, not a flip. Any ideas are much appreciated

@ Devin Mcclish The seller is not wanting to do a deed of trust with owner financed note. He is wanting to do contract for deed. This would not transfer title until the contract is paid. Seller maintains title keeping him more secure  that the financing is actually paid. Also keeps both of us from incurring title fees until I sell, doing double closing. I am not sure that if I can use "and/or assigns" on contract and transfer when I go to sell. Seller seems to be worried that if I decide to keep as rental that he would have a hard time evicting a corporation. I am worried about my tax implications. 

I've found a deal I like. FSBO property for 49k. 10k down gets me keys. 15k reno. 110k arv. I love the cash on cash return on this deal. The only problem I have is that the owner wants to sell on contract for deed through proper escrow and does not want me to sign through my llc, which is set up for s-corp taxes. I understand his need for protection, which is why he is doing contract for deed. I just want all the write-offs and the growth and protection of my llc. Is there a way to appease both parties while maintaining the seller financing terms? I have offered to put a personal guarantee on the contract. Thanks

Thanks for all the responses. Ill let you know what works once i tackle the situation. Im going to start with the all natural solutions and work my way up. @Tony Gonzalez I am absolutely certain that the problem is indoors. I have found a few spots from the basement that I believe have soaked through to the subfloors. The hard part is that everything is finished above so I pray that between baking soda, vinegar, and the ozone machine works. Painting shellac on the joists would be such a pain. Ill keep you posted on the success or lack there of. 

 Thanks for the quick response. I believe I am going to have to work a step by step plan here. Beginning with the least expensive and fastest, working my way up. I have just never had such a saturated home before. I haven't had much success with ozone generator as they only clean the air and not the enzymes themselves. I believe the humidity it bringing out the smell that has seeped into the subfloor and perhaps the joists. I am praying that vinegar will work. If not.... on to the shellac based primer. Unless there are other suggestions.  

I bought a fixer upper about 2 months ago. They had cats! And carpet. Well after demoing half the sheet rock,and pulling the carpet, most of the smell was gone. Of course there were stains in the hardwoods. After vinegar, baking soda, and peroxide before refinishing the hardwoods the smell seemed to all but disappear. So.... I assumed, good to go. We finished the hardwoods, and the whole house. However, I may have been in the house too many hours of the day along with the other guys working for me. Had a friend stop by to see the progress, and he smells cat urine, without any knowledge of what I ran into initially. *&#@! So now i need a fix. One that doesn't involve ripping up any of the work that's complete.  Biggest problem is that I'm beginning to run low on cash. My initial thought is trying to spray the floor joists in the basement with vinegar. I'm trying to avoid spraying all the floor joists with a shellac based primer. Any simple, cost saving solutions would be much appreciated. Thanks