All Forum Posts by: Meredith Von Kleydorff

Do you think there will be a shift in hard money and other investment loan interest rates on average as conventional mortgage rates continue to rise? Im in the Atlanta market and from what I see hard money interest rates are on average around 8-13%. With conventional rates around 5% and projected to increase more this year, will this have an effect on the interest rates for hard money loans? Would love to hear some opinions on why or why not. Thanks in advance!

I wanted to get some investor insight on which is more preferable when purchasing a wholesale property. Feedback appreciated. 

Would you prefer to be able to offer as high as you want to pay to get the property 

OR 

Have a fixed price where the first investor to move on the deal gets it for the price it is offered for

Hey Scott! Sounds like you are in a good position to get started on some fix and flip projects. If you dont have much time to dedicate to marketing and searching for deals or thats not your strong suit, I would recommend working with a company that can bring you a steady stream of inventory. This would save you time, energy, and resources so you can get in and focus on the repairs.

Im an agent with a brokerage here in Atlanta and we work only with investors and distressed properties. The service we provide is specialized and saves investors a lot of headache so they can use their time and resources in the most profitable and effective way for them. Youll have a whole team of agents essentially working for you to bring you deals. AND you wont pay any commissions with our business model. Ultimately, deal flow will be essential to your success. You cant flip houses if you cant find a good house to flip! Would love to be a part of your team and play a hand in your success. 

Hey Everyone - I wanted to start a thread with information like tips and tricks for using FHA loans. I recently learned some valuable information about these loans and would like to know more specifically about FHA 203ks too. A common misconception is that many people think you can only use an FHA loan once for your first home purchase to put 3-5% down. You can actually use it as many times as you want as long as it fits certain criteria. You can get another one for a primary residence for reasons like relocating, growing family, divorce, if you co-signed for someone and now want your own. I believe you can even have 2 at once if its in 2 different states that qualify. The main caveat is that they are not meant to be used for investment property purchases.

Is there any way to navigate this like if it's a single family house owner occupied with 'roommates'? What if there is a ADU can that be used for rent?

Please correct me if any of this is wrong and drop your FHA knowledge below! Thanks in advance.

Hey Darryl - welcome to BP! I wanted to clear up a common misconception about FHA loans that I recently learned that may be of value to you. Many people think you can only use an FHA loan once for your first home purchase to put 3-5% down. You can actually use it as many times as you want as long as it fits certain criteria. You can get another one for a primary residence for reasons like relocating, growing family, divorce, if you ci-signed for someone and now want your own. I believe you can even have 2 at once if its in 2 different states that qualify. The main caveat is that they are not meant to be used for investment property purchases.

I can run numbers, send it to my DM. I work with investors who fix and flip using hard money and cash so im always running numbers to make sure deals work, the profit margin is there, the ARV is solid, and the rehab is feasible. I break down a hard money transaction for every new buyer I work with to give them a good idea of their cash to close, profits, ROI, cash out of pocket, etc.

Any recommendations on the best way to finance new construction projects quickly? I occasionally sell land deals to investors who build new construction and we do 14 day closings. It seems like the best option for them is to acquire the land cash and then finance the construction. Because of potentially long time frames of creating plans, getting them approved, surveys, etc this can be difficult to find. Are there lenders out there who can finance land deals without plans and surveys and close in 14 days? Is this even feasible? Thanks in advance!

 Hey Robin - thanks for the feedback. I was thinking that might be an issue, but wasnt sure how creative you can get with this kind of loan program. I have looked into small multifamily units, however they are hard to come by and for the right price in Atlanta. Also was hoping to get something relatively turnkey which would be a challenge to find in my price range. 

What are the risks or downsides associated with a non QM mortgage?

Hey Everyone! Looking to get some advice and guidance on DSCR (Debt service coverage ratio) lending. My goal is something along the lines of a house hack by purchasing a single family home with maybe 4 bedrooms and living in one and renting out the other 3 rooms to roommates. I am a recent college grad and have several friends looking for affordable rental options and see it as an opportunity to jump start my investing journey. Id want to have the mortgage and expenses covered by the rental income and hopefully a little cash flow as well. I have some cash for the down payment, but it looks like the down payment for these loans can be 20-30%. Im in the Atlanta market, which is pricey. And this will be my first home purchase. I like this loan for my situation because Im a realtor so I have inconsistent income and little credit history so it seems like a good option because they lend based on the income of the property.

Wanting to know if anyone has any experience with something like this? Or any recommendations for other options instead of or in addition to this type of loan to fund a deal like this? What ratio should I look for? Also, if I used a DSCR loan and took title to the property in an LLC, could I still use an FHA first time home buyer loan for another home purchase later on? Any feedback is appreciated. TIA

Atlanta is a great market! It is appreciating rapidly, but there is still lots of inventory and deals to be had here. Inside the perimeter there are many old homes (40s builds) that are 2/1 or 3/1 that need large scale renovations, but the returns can be huge for flips because of how greatly the neighborhoods are appreciating. As far as rentals go, short term airbnb in the city can be super profitable in the right location. Long term rentals in the suburbs are also becoming increasingly popular because many people are now moving to the outskirts of cities.

Also - Would love to help you find your next project, message me!