All Forum Posts by: Melissa Harris

@Nghi Le yes that is what I meant! Lol. Thank you very much for the heads up on all the other costs that I need to take into considerations, I only thought of a few of those, so I appreciate it! 

I will definitely look into talking to a non-conventional lender about refinancing end of things and how that really works with using hard money. 

@Sean Blomquist that is who I spoke too and when I called him back, he explained how this can be done :) Great guy!

@jackbobeck thanks for the advice! I called the hand money lender and spoke to him about this and he definitely helped me on how this works :) 

My business partner and I have found a great deal for a buy and hold but it definitely needs repairs. We would like to use a hard money lender to finance the purchase price and repair cost. I spoke to one this morning and they can cover all of the purchase price and 90% of the repair cost, so we will need to bring $10,000 to the table at closing, which we are fine with doing.

My question is, can we refinance this property into a 30 year conventional loan and use it as a rental instead of selling the property? This would produce us $303/month in cash flow and have a 14.6% cash on cash ROI. If we did this, will a hard money lender allow for us to keep the property instead of selling it?

@Antoine Martel so since this is a whole sale deal and they are offering it at $390,635, is there any room for negotiating with a wholesaler? I have never bought from a wholesaler but I would assume not since they need to make money on the deal too. 

@Antoine Martel what is a good % to buy at below market in your opinion? 

@Shawn Clark yes my business partner and I will be doing the rehab ourselves, he has alot of experience in constructions, so he knows how to do 90% of the rehab (minus electrical work), I am a licensed agent, so we will just have to pay the buyer's agent which will be $14,560 and our money "lender" is a good friend of my business partner and they are not asking for any cost to upfront the money, they are just asking for 40% of the equity we make off the deal. 

Oh no I really appreciate your side of thinking! Like I said this will be the first fix n flip for my business partner, so I want to make sure that we are buying it right. I have been an agent for 4.5 years and so I kind of know when a good deal is in front of me and I really feel like this is a good one but I want to hear from experienced investors and see what they see and if they would buy it. I am glad to hear that you would do the deal!

@Antoine Martel this wholesale deal is certainly below what it is worth, at least 10% below market as it sits right now. 

@Shawn Clark thanks for the response back! The situation I am in, is that there is a wholesale deal that was brought to me. They are trying to wholesale it at $390,635. The ARV is $520,000. Repairs are roughly $35,000. Does this seem like a good deal to you? This is in a great neighborhood and would sell within a few months. With this being my first fix n flip, I am not really looking for a 20% profit for my first deal. I would be fine with less to get the experience and knowledge I need to get my portfolio going and start building it. What type of profit did you make your first deal? I am planning on doing all the rehab myself along with my business partner that has a ton of experience in construction.

I would like to get some insight from experienced investors on if you use the 70% rule for ALL your flips? Could someone explain a little bit more in depth what the 70% rule really means and why they suggest you buy a house with this rule minus your repairs?