All Forum Posts by: Mark Neiger

@Melvin List It's a SFH. I'm shopping around for the right lenders, just finding it difficult.

I have a vacation rental that I purchased and rehabbed with a loan from a family member. The rental is performing beautifully and I would like to refi the home and pay back the borrowed money. I'm getting mostly no's from everyone I've spoken to so far. Most want want long term tenants and leases. I have had a few HML's offer to fund 65-75% LTV but for 7-12% with points and short terms. I can understand the reluctance due to the increased risk however I would think there would be a market for such a product as the vacation rental market continues to grow. Anyone have any recommendations?

Thank you all for the responses. Lots of good information! I'm evaluating a 24 unit right now and will heed all advice given. 

From what I've gathered from the experienced investors here I should be evaluating properties based on the IRR. I know how to calculate it but I don't know what is considered a good, mediocre or poor return. Could some of you give me some help with this?

Thanks Dustin! That's kind of what I thought it was. If they finance only; taxes on their profit. If I partner with them; they will have some tax write off on their portion of ownership.

Thanks guys! The numbers work on this next one. Just wanted to make sure I wasn't a fool for just offering ask price. Gonna move forward with it. Wish me luck!

I'm new to flipping and was wondering what the etiquette is on negotiating a price with a wholesaler. Is it normal to give them their asking price if the deal works or should I make them lower offers similar to when buying a house the traditional way?

I purchased my first flip from a wholesaler for what he asked and it was successful. I'm analyzing my next deal from the same guy but am wondering if I should offer him lower than his asking price.

Any thoughts or advice?

Thanks Jon!

Guess my question wasn't very clear. Sorry. I have a family member who wants to "help me out ". I currently have rental properties with traditional financing in place. I have recently begun flipping single-family homes. I have used traditional hard money for these. Points upfront and 12% is exactly what I've been paying. However if they are my lender and want to give me better terms then I don't know what would be realistic to offer them. They have no prior lending experience. It will not be inside an IRA. Ultimately it will be up to them but what would a good starting point be? I was thinking maybe 10%. There will be no points.

The tax question was in regards to if they invest and partner in rental properties with me wouldn't they be able to somehow write  off losses on the income received from the property?  They are retired and have a large nest egg of cash that is not in a retirement account. They sold their last home for millions and have most of that cash in stocks, etc. Probably better for me to just ask my CPA about that. 

What is a reasonable rate to charge a private investor for both a short term loan on a rehab and what on a long term buy and hold rental? Also, what tax implications or breaks do they receive if any?