All Forum Posts by: Michael W.

@Roberto Gutierrez Thanks Roberto. I guess I should be more clear, I'm using hard money to buy the land and build a duplex. But to your point, how do you purchase the land/property? With equity, acq loan? And then when you get your plans, you then a construction loan that pays off the loan for the land?

Hello!

When getting an acqu/construction loan, how can you really know your costs/budget until you have construction docs from the architect and send them out to contractors to bid. That takes months. Do you just give your best estimate to the lender and go from there? One obviously wouldn't want to do all of that until they had the property under contract or bought. 

Thanks for your help!

M

@Joseph Scorese great to hear! Sent you an email.

@Brian Garrett that's a good point, thanks. I'll look into that.

Yeah, bought them with cash, and plan to refi...when I can.

Hello!

I'm looking to buy a 3-4 unit property in Philly, but having difficulty getting traditional financing due to me starting my own business last year. All lenders are saying I need 2 years of consistent income. I know I could get a hard money loan, but then I won't be able to refinance once I renovate and lease the place out, and I'll be stuck with a high interest loan till then.

I have three rental properties (in los angeles) that are netting me 120k (pre tax). I only started renting them as of May 2017, so even if I wait till 2017 taxes, it wont show all the income I'm making. The only other way I can think of is getting a co-signer.

Any other suggestions?

Thank you!

M.

 Best case it takes 2.5 years. So I was figuring three years. Don't see home prices in this area falling that much if so. Even during the recession home prices only fell 10-15%. Comps are selling for 1.1M

Hello! Looking at a piece of land zoned RD2, 7,900sqft. Can do 3 houses (2,000sqft). By my calculations, this project works, but would like some feedback on pricing and other peoples experience doing these. Heard it's not worth the time due to the entitlement process and backlash from the community. What's your experience? Thanks!

Acquisition Costs: 111 sqft

Hard costs: 270 sqft

Soft Costs: 72 sqft

Financing : 20 sqft

COS: 32 sqft

All in: 506 sqft

@Jason D. Hi Jason, so to be clear, if I buy a property at 665k with hard money, use investor money to pay off loan payments and rehab costs (150k), when I refi in 6-8 months, most likely I can only get 70% out of that property, so the new property value would have to be about 950k in order to pay back the hard money loan of 665k. That seems like a lot, do you usually find you have a higher LTV refi loan?

@Ryan Detig Didn't realize that re commercial loans, thanks. 

@Jason D. got it, thanks. Yeah, that seems to be the case, but I can't get a conventional loan for another 1.5 years, so not sure what else to do.