All Forum Posts by: Max Gomeniouk

Hi all,

Wanted to see if anyone run into this issue and can offer advice. I'm working with commercial lender for financing and put in my first offer on a fix/flip property. Offer had financial contingency and our agent outlined the terms of our loan (6 month interest only note at prime +1%). upon sending the offer seller's agent requested that we provide a pre-approval which my commercial lender will not do until underwriting is complete. To start underwriting we need accepted offer...anyone dealt with using commercial loans when purchasing homes off MLS?

If any additional details are needed please let me know.

P.s. For this particular deal I got a personal pre-approval just to get things moving. I don't want to go this route in the future to avoid burning my credit score.

Max

Hi Dave,

Thank you for your response and send out feelers. We are working with a purchase price around 130k and about 60-70k rehab budget with goals to pull out about 30k in profits. This would require ARV of 250k or higher. So far we are unable to secure a contract on any property because after running the numbers, our offers are pretty low. We've done this on two properties so far (Brown Deer and Grafton).

I appreciate the help.

Thanks!

Max

Hi,

My wife and I are new at this and are looking to assemble our Team as we are getting started. We are looking for Core Group as outlined in various articles on BP

1. RE Agent (REO and Short Sales experience is a plus)

2. Attorney

3. CPA

4. Contractors

5. Lenders

Our strategy is to start with Flips to build up some capital and then move into Rentals to create cash flows. I would like to do at least 2 flips in 2018.

Thank you all in advance and happy Holidays!

Max

HELOCs are cheaper from closing costs aspect. Once you use the funds, if the rate environment is favorable, you can always refi into a fixed mortgage and consume your HELOC. Few unknowns in this area however it will let you have access to funds at a lower cost initially. Just my 2 cents. Definitely run through a few scenarios with your lender.