All Forum Posts by: Nandish Parmar

@Diana Jing - Look at that cash flow!! I am also from DFW just starting out. Can I send you a direct message over BP? Thank you

@Alan Nelson - Thank you, I will try again with that code. Did you use your LLC exclusively as hard money/private money lender or just a general real estate company?

Hello Experts, I am trying to open a bank account for my LLC, that is going to act as the Hard money lender for my wife, when she buys a property. When using the naics code 522292 (This U.S. industry comprises establishments primarily engaged in lending funds with real estate as collateral.) banks are refusing to open bank accounts.

What NAICS code do hard money/private money lenders use to open bank accounts?

Reason to open that LLC is this thread in case you have not seen earlier - https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property

@Kallan Kaliya, What naics code did you use to open the bank account for private lending secured by real estate investments? Chase doesn't allow opening business accounts with NAICS code 522292. 

So, I have been analyzing "Deals" from wholesalers/MLS/fb groups but so far none of the numbers even come close to the 1% rule or the 70%ARV rule that everyone talks about.

I am from the DFW area and wanted to run numbers here for any numbers enthusiasts to tell me if I am doing anything wrong while running these numbers or the "Deals" are really that bad. My strategy is BRRRR.

This is the one that I analyzed today:

PP- 161,200

Rehab - 40,000 (Conservative)

Total cash needed - 201,200

ARV - 210,000 (conservative could reach 225,000)

Loan amount - 168,000 (80%)

Cash invested - 33,200

Estimated monthly rent - 1650

Fixed costs:

Mortgage- 766 (30 years at 3.625 with 80% of arv)

Insurance- 100

Tax- 481 - based on 2.75% of arv (texas)

Variable costs:

Vacancy at 5% - 83

Capex - 83

Opex - 83

Total costs - $1596

Monthly cash flow - $54

CoC return - 2%..

Please tell me if you use something similar? Also would love to see something similar for your cash flowing property that has atleast an 8% COC, along with your market information.