All Forum Posts by: Michael Thorne

Hello BP Community -

I have a couple of properties in a small town southwest of the DFW area and northwest of Austin. I bought the properties from another local investor and would like to get a hard money loan for the rehab. My usual HML sources in DFW only do loans in the metropolitan areas. I am looking for a HML resource to help out here.

Questions, comments, recommendations?

Thanks!

Michael Thorne

Thanks for the replies. I am looking at going with a partner.  

Hello BP Community -

I have an opportunity to buy an off market 4 unit. Purchase $350k, all units currently rented for $800 each on month to month leases. It needs some repairs but haven’t found any “majors” yet. There is opportunity to increase the rents. 
Here’s my question: I can get a commercial loan based on the rental income that would provide positive cash flow. However, that would require 25% down and I would like to preserve cash for my fledgling fix & flip business. From your experiences, what are some creative alternatives I can use to get this deal done?

Hi BP community-

I have a chance to get a 4 unit property. It’s currently rented at $800 per unit, month to month leases.  Asking is $350k, there are some repairs needed.  I can get a commercial loan based on the cash flow, however that would require $87,500 down (25%) and I am trying to preserve cash for my fledgling flip business. 
Reaching out to the more experienced BP brain trust for ideas on the down payment or other options and alternatives. 

Thanks Mike, good thoughts. You hit the crux of the question in my mind.  I don’t think there are foundation issues - there are no cracks in the sheetrock for example, which typically show up. But in this part of TX your mind (at least mine) goes to possible foundation issues with something like that.  

Good idea on the rug, we’ll have to check that out.

Hi BP Community - 

I am selling a house as executor. I want to sell "as is", with some touch-ups done like paint, clean carpets, trim up the landscaping. It's a higher end house in an HOA, backing up to Army Corps of Engineers land off of a lake, good condition overall, 16 years old, has been a rental the past 3 years.

That’s the background, here’s the question: the entryway tile has a crack in it, which in Texas implies foundation shifting - not for sure, but common.  Estimates to fix the tile are in the $5,000 range because you’d have to replace all to match as it goes into the kitchen.  Should I get the tile fixed or keep the “as is” part? (Market here is as good as any other, houses going quickly)

Sounds like a good time!!  Happy B-day!!