All Forum Posts by: Michael Challenger

Agreed, I share the same mentality. Even if I am to not be taking home the lion's share of initial deals, I'd like to still be building some capital for future dealings.

 Hey Gene,

Thanks for the valuable insight. When completing these deals with cash vs HML, was this cash that was rallied through family and friends, or accumulated through previous flips?

The single biggest issue in my way currently is obtaining enough cash, whether it be my own, or through partnerships or family/friend-based lending (which I am very hesitant about to begin with as this could potentially strain relationships unnecessarily when money is involved). I have been exploring gigs and hustles to build capital in addition to my 9-5 towards a property, but the growth is not moving at the pace that I would like it to. 

I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible. Of the conversations I have had with people discussing hard money lending, some seemed opinionated in that the high interest rates and terms were enough to scare them off. I would love to connect and pick your brain a little more to understand structure of these loans! 

Hey y'all, 

I have approached a point where I have built up more confidence in performing my first house flip in the Charlotte metro region. I currently am a resident here (so distance is non-factor) and I possess some handy skills that could save renovation costs (besides HVAC, structural issues, plumbing, electrical work). I have been exploring viable options as well as doing my due diligence, reading, and research to come into a deal as prepared as possible. 

Currently, a hurdle that I am looking to get over is securing lending that will also have renovation costs built into the actual loan amount. I understand that with traditional mortgages, it is unlikely to receive lending that incorporates speculative renovation costs. Additionally, I understand the risks associated with obtaining hard cash and working with hard money lenders, including higher interest rates due to the short term nature of the loan as well as the risk involved. However, I believe that this would be my most viable option for securing lending. I would be happy to discuss structure and feasibility as well as insight into my personal finances/personal stake into a deal with serious lenders/prospects.

Even if you are reading this post and are not a lender but have valuable insight or experience with flips in Charlotte's market, please don't hesitate reaching out. Any information you are able to pass off is good information to me!

I am looking to connect with any experienced home flippers & Lenders in the Charlotte area, or even just build my network. I am eager to learn the in's and out's of Charlotte residential real estate market as well as gain some experience flipping houses while turning a healthy profit for myself and investors. 

I recently came across a property through an agent with attractive numbers for a house flip. We have had brief discussion regarding general Q&A information, and proceeded to provide an ARV price range that would be very attractive to me.

Because of this, I am much more inclined to proceed and heavily consider this purchase. For me, I am a little hesitant because I would be in a situation where I would be trying to secure traditional lending (which should be very feasible given credit scores & what $$ amount I am pre-approved up to from my banks), meaning that I assume I would be forced into using my first-time homebuyer loan incentives. I'm not too hung up on this, because the margins still appear very attractive (from what the agent speculated ARV). my hesitancy stems from a lack of experience and direct steps/plan of action to take on a property I like.

I am now at a big of a standstill, and I am here seeking advice on next steps. I have yet to complete a walk-through of the property and see what renovations may be needed (potential for HVAC and interior, but from my understanding the roof and windows were replaced within the last 7-8 years). I am not terribly concerned with networking to find reliable contractors for renovation work. My agent also mentioned resources that could be of assistance for that. What should my next move be if I am looking to push forward with this deal? What further analysis should I be honing in on and key factors/metrics/info that may be providing inaccurate numbers?

I am looking for advice from seasoned house flippers, both in my local market and otherwise with a track record of success; or even with sound wisdom that can be applied to this potential deal. I am also curious about when/how an attorney/legal involvement comes into play with this. Lastly, I am extremely open to working with investors, or obtaining private funds as well.