All Forum Posts by: Mike Stadel

I have been looking into a hard money lender to finance my next flip and came across these guys the look lIke they could be a pretty decent deal... Or does anyone have a suggestion they know of. I’m in South Dakota and it seems hard to find lenders for my area. The back story why Im looking for a hard money lender is because I recently quit my w-2 job of 22 years after the business sold. I was plannIng to transItIon Into real estate and apartment InvestIng in the next yr anyway plans just got moved ahead a little sooner than anticipated. Thanks for any info

@Dave Van Horn Thanks Dave that’s just what I wanted to know

When you have prIvate investors where do you keep the money before the flip is purchased. Do you have an escrow set up or just a regular account to have it in.

I believe he is referring to the excise tax. I didn’t pull any permits for this project, figured I’d jump in get going an ask for forgiveness later on this project since It was the first one and I was kinda feeling it out being the first one. Thanks everyone for the input really appreciate it. I will do some research with the city now that you all have broadened my view on this.

You are correct I didn’t ask him to specify. Ive had some other advice I didn’t like from him before so just decided to take it to BP to get some insight.

Thanks for the feedback an it’s funny you both mention getting a new accountant as that has been on my mind from some other prior dealings....advice noted

So I went to my accountant to ask how I would be taxed when I finish my first flip and he went off on a tangent and is telling me I should be licensed to flip houses. So that brings me to my questions... How many of you are licensed to flip houses, is it necessary and what kind of licenses should one have? I’m strongly considering quitting my job of 20yrs and doing this full time as I am very pleased with the results and how this first flip went.

Thanks guys for the feedback I feel good about selling it now and moving the the next deal appreciate it much!!!

@Joe Villeneuve  Ya I should of mentioned how I acquired it. I have a 116k construction loan that will have to be paid off and I have 27k in cash invested and (creative financing) for the reno so I’m calling it 150 for round number. basically with a cash out refi I come out with a rental and no extra cash to spend on something else. All said and done I was hoping that I’d have some extra money to play with after doing a cash out but looks like that’s not the case. I do still feel I come out well either way. My overall main goal was to increase my liquid cash in the end but if I can have my cake and eat it too ( how ever they say) I definitely would

On the rent numbers I can pull 1400 for it on a 1150 mortgage no problem

I am finishing up my first flip and it’s decision time, sell, refinance and rent or burn it down...kidding kidding on the last one. My intentions as I got close to finishing the house were to cash out refi and rent it and get another rental with extra cash I thought I’d pull from it but... banks and lenders aren’t making that look very enticing so before I commit to sell I’d like some advice. I have 150k into the house total I’m expecting to sell it for 200k and I am expecting I can refinance it at close to that value but lenders are only giving back 75% LTV for a cash out refi that leaves me short to even get my invested money back so I conclude I sell it and walk away with 25k ish in my pocket after Uncle Sam takes his undeserved share. A couple other things to point out is I’m not using a realtor so selling fees are minimal and if I rented it I’d cash flow a min of 250/month. And the house I live in now I planned to turn to a rental by years end and buy me another live in home. Is there another option than to sell like a portfolio loan with that house and my other two rentals, or is there anywhere I can get a better LTV on it. Thanks for any ideas!!