All Forum Posts by: Maxwell Fontaine

Hey @Karen Lunger

Just keep in mind you should protect yourself with a builder’s risk insurance policy. To use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hey BP'ers

Just keep in mind you should protect yourself with a builder’s risk insurance policy. To use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hey @Tamir Cohen

Just keep in mind you should protect yourself with a builder’s risk insurance policy. To use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hello fellow BP

Just keep in mind you should protect yourself with a builder’s risk insurance policy. To use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hey @Mike Sola,

203K loans are great if its your first property. The good far out ways the potential negatives. There are 2 203 loans which is the 203B which is mostly cosmetic renovations not allowed to move any walls is really how they define it. Then the 203K which is much more in depth and larger rehabs like additions or rebuilding parts of the property. The contractor does in fact need to be approved but its based on the cost of the rehab. Its a very good product to use if you want to get your foot in the door. Remember you don't need to hit a home run on your first deal. If you eliminate your cost of living (rental expense) you are still essentially making that money every month anyway.

They aren't a BRRRR tool because the purchase price and rehab is calculated together in the appraisal.

Hopefully that helped out a bit. Reach out if you have any questions.

Typically, an FHA closing takes about 45 days to close or more. I would assume that the seller is a bit motivated to sell quickly. Everyone has their own reasons so I would ask the realtor the reason for the need of a quick closing. I hope that helped at all.

How to property get the numbers before they pull the trigger I would think is number 1. They would get bombarded with the idea of the variables and what ifs to get a property to cash flow. Solution. reach out to people in your area who have done what you are trying to do and speak to them. I guarantee if you think there are not any people around you doing what you are looking to do in real estate... YOU ARE NOT LOOKING ENOUGH !

Hey @Brandon Ribeiro, This is an exact problem I had a few months ago. I found a way around it is to look at other ways to make the deal work. Real estate is a very fluid field and has no set rules so that means you don't "need" conventional financing. You can always go with owner financing and lower the down payment to something manageable for you while still getting the seller what they are looking for at the moment and even give them some monthly income (just like a bank mortgage). 
You could try to get a payment plan for a small entry price and flip the house to pay off the remaining note to the seller once the flip is completed. That allows for a higher cash on hand for your renovation budget. 

Those are just 2 ways to make it work for a smaller budget. You just need to think outside of the norms to make it happen. I hope something I said helps, if you have any questions please let me know I would love to help if possible.

Good Luck sir!

Hey @Don Johnson 

I ran into something like this a couple months ago. My point difference was 60 points lower. I asked the broker and his response to me was that they use more in depth models AND they apparently use the factor into your score of your ability to get credit and how much you currently have vs what you could have. It is some confusing stuff that us mortals are not supposed to truly figure out. 

Next time you sit with a broker have a couple of pre-loaded questions to ask them and see what answers you get. 

Best of luck to you sir and if you have any questions about insurance please feel free to reach out, Id love to help out.

Hey @Matthew Otero Thank you for your question. 6 months are typically the shortest holding time for a smaller bank unless you have a personal line with the bank. An investing partner of mine has a personal line and can get it done pretty much immediately after a its appraised for their own numbers sake. You might be able to see a shorter time without that personal line if you look for credit unions. I am talking to a credit union to get a cash out refinance after an appraisal (2-3 weeks) no matter when I bought it. 

Hopefully you gave a little assistance for you.