All Forum Posts by: Michael Dill

Hello,

I am a licensed GC with a small remodeling company based just outside of nashville in Murfreesboro. I have flipped a couple of houses myself and have a couple rentals so I know what investors are looking for. We pride ourselves on getting projects completed ahead of schedule and under budget. The quality of work is excellent and you will be amazed at the value we can bring to your Real Estate business.

please contact me through the form on my website or schedule a call with Calendly:

www.griffin-group-llc.com

https://www.facebook.com/profile.php?id=100087758385077

https://www.instagram.com/griffingroupremodeling/

https://l.instagram.com/?u=https%3A%2F%2Fcalendly.com%2Fgrif...

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $217,000

This 1,250sqft 3 bed 2 bath will hopefully be a great rental one day but for now it's my first home! Purchased on a 100% financed loan and seller-paid closing costs, I actually got a $100 check at closing. Before I moved in I painted everything and tore up the carpet/vinyl to be replaced with hardwood laminate. I did all of the labor myself and spent under $2,500 in materials. The house now sports a modern and trendy look.

What made you interested in investing in this type of deal?

My options were rent, own, or house hack and I would have liked to have done a house hack, but there aren't many multifamily's in my community, so I settled for the American Dream.

How did you find this deal and how did you negotiate it?

A realtor sent me an automated email of MLS homes. Looking back, I'm disappointed with my negotiation tactics, but my wife and I really wanted to live in this neighborhood and a house right down the street sold for asking price in cash the week before. So we offered above asking price then after inspection went down to asking price. I could have gotten it for less but hindsight is always 20/20.

How did you finance this deal?

100% USDA backed rural development loan

How did you add value to the deal?

Sweat equity. I painted and replaced floors.

@John Teachout yes John you’re exactly right. I will plan for the worst, and then add some safety (maybe 10%). It will be difficult for me to find a deal in this market that will work with my expensive loan costs, so I’m spending a lot of time/money on marketing.

@Caleb Jordan Home Depot might let me buy materials on a line of credit? That’s a cool option I didn’t think of.

And yes, the HML requires $15,000 cash reserves in the bank. Which I do have (barely lol)

And yes I do own a house, which I bought for $0 down in November and finished remodeling around February.

That's a good point I do need to try to call the smaller local banks, I was just curious about private money. Also I'm not counting on the local banks financing for 0 down, but it won't hurt to ask. 

I found a hard money lender that will finance 100% of purchase price and rehab cost up to 70% of ARV. the catch is that they wont pay for rehab until each stage is complete, so I'll have to pay contractors as they go, and then get paid back by the HML. and of course the fees are pretty outrageous.

The girl on the podcast today said she used 0 interest credit cards to fund some of her rehabs, so maybe i could do that. 

idk the more i talk about it the more i feel like I'm ready! haha I need to go ahead and get pre-approved and and start marketing!

thanks for the reply Paul,

2 weeks to 60 days? that's way more than what I was expecting, glad I posted this question. 

I was expecting to have to coordinate all of this in a week or 3 weeks at the most!

From all I've read I just figured the best deals typically have to close in 1 or 2 weeks. 

I'm glad you mentioned that, I have assumed 1st lien would have been a given for a private lender, but I probably need to mention it more. 

I found a hard money lender who will loan 100% of purchase price, but the fees are high and I would also likely need help funding rehab costs. In this case, I don't think the private money lender would be able to hold 1st lien, but they would have less money in it, and I would be able to pay them higher returns.  

I've reached out to most of the family/friends who would be able to fund it, but most of them have their money in the stock market and are either scared or don't want to go through the hassle of getting the cash out. Maybe I should offer higher returns or like you said first lien position...

If you were in my situation (trying to get funding from people you don't know), how long would you give yourself from the time an AOS is signed until closing? one week? 2 weeks? I will have to decide this for myself before I can even start negotiating. Obviously shorter time will lead to a better deal, but I don't wanna make it too short and then not be able to find funding. 

Keywords: Nashville tn tennessee clarksville brentwood franklin dickson manchester interest middle 

Hello everyone,

So my question is: how hard is it to find a private money lender if you have a good deal, but NO experience?

I understand it's a loaded question so bare with me here

-The one thing holding me back the most is that I'm afraid I will get a deal and then I won't be able to fund it, causing me to have to back out and lose credibility with Title companies, agents, etc. 

-Being new, the best thing I can do is get an Agreement of Sale on a gem of a deal. Great deals usually have to close really fast though... which is why I'm wondering how quickly you think that I can find someone to fund it? or to just fund part of it?

-I would post the deal on the REIN facebook page and here on BP. these are the only ways I know of to connect with lenders.

-So what I'd like to get out of this post is: 

-From a lenders perspective, would you even consider loaning to a newbie for 20%? 30? 40?

-How well do you typically know the people you're lending to? 

-would you be more likely to consider funding a portion of the deal? Like if I funded the purchase and a lender funded the rehab?

Population growth is flattening out? I didn't realize that, where did you get this info? 

I've lived closed to Nashville my whole life. I know it's been hot for many years and I haven't heard anything about it slowing down. Although I'm not really in the game yet and I don't have REI connections.