All Forum Posts by: Michael Clark

Thanks to all of you for the helpful advice, I am not a GC but I do have experience with light renovations and that's what his house requires flooring, paint, light fixtures ect. He wanted me to help him with this house because he doesn't trust the "as-is" investors. I spoke to him today about adding me to the deed and he said he's good with that so tomorrow we will call the attorney. As far as the rehab costs and the ARV we are working with an agent and using websites to see what homes in the area sold in the past 12 Months. Fortunately for us, his house style is very common in this area and I was able to find a handful of his exact style of house that sold within the past three months. His style of house is currently selling for 210K-225K in the same neighborhood and he owes 50K on it. The house needs about 25K worth of rehab and it will be ready to sell.  I'm excited for this deal, will update once we get a little further down the road.

My friend wants to sell his house, he's lived in it for over 10 years and he has equity but it needs a lot of work. He wants me to loan him the money for the rehab and take the lead managing the project then we split the profits. What's the best way to structure this so everybody wins?

Thanks to all of you for replying to my post.  All the feedback helped me alot, your comments are greatly appreciated. 

@Ben Lapane

this definitely does help. I appreciate your feedback.

@Ben Lapane all the bankers I spoke to that could do cash out said 65% was their standard and they cannot go above those numbers. they did not get into the specifics of my situation.

as far as bankability I'm good there. I have low DTI, stable work and plenty of reserves. Houses Im looking at will be 115 to 130k ARV.

@Brent Coombs sorry for the confusion the question was poorly worded.

Is 65% cash out on the refi decent or should I keep searching for the 80% cash out LTV?

Does the refi step in the BRRRR process have to 100% be a cash out refi for it to be a clean BRRRR? Or could I get away with doing a simple refi and have the new lender pay off a HML.

I ask because after calling 30+ credit unions and banks in NC the best I found was 65% cash out LTV.