All Forum Posts by: Nick Burns

PP: $300,000

FMV: $350,000

Property details: Year round 3-unit with 3 seasonal cabins in Old Orchard Beach, Maine. Old Orchard Beach is a heavy tourism town with several colleges near by. The property is one block from a 7-mile beach (2-minute walk). Additionally, the property abuts a nature preserve and has no immediate neighbors.

Renting scenario #1: $1,000/month per year round unit. $800-$1200/week per cabin for 10 weeks during the summer (4th week of June through Labor Day weekend). Gross rent: $66,000 (without vacancy factored in.)

Renting scenario #2: 3 apartments could be rented seasonally ($1,000/week) during the summer and 9-month leases during the rest of the year to college students ($900/month) in addition to the 3 seasonal cabins. Gross rent: $84,300 (without vacancy factored in.)

With commercial lending at 25% down payment, $75,000 would be required; unfortunately I don't have $75k in cash.  Does anyone have a suggestion on how to make this deal happen? Any advice would be greatly appreciated.

@Sean GrapevineIn my experience, conventional lenders require property ownership for 2 years before factoring the income from that property into the borrower's DTI. So you are suggesting that you can do this prior to owning the property?

@Sean GrapevineAm I understanding your post correctly when you say that the borrower can use the Fannie Mae 1025 form to factor in potential rental income when calculating the borrower's DTI when applying for a mortgage?

What strategy are most people using in a BRRRR or buy and hold strategy for refinance? I suppose if you can qualify for a conventional mortgage that would be best; however many people don't qualify for conventional mortgages with the new rules and regulations. Additionally, once you reach the max of 5 or 10 financed properties based on your state regulations then conventional mortgages are out of the question, what are people doing? ARM with balloon payment? I'm interested to hear what others are doing and what is working for them.

Thanks!

BP world,

I am looking to get financing for several upcoming deals, however finding honest and fair private financing can be a bit of a challenge and convoluted.  I've spoken with many private lenders, many of whom appear to be professional and legit, but I have also spoken with others that appear suspect.  Who do you recommend for private lenders for both purchases and purchase, rehab, and hold acquisitions?  I'm looking at developing a long-term partnership that will be mutually beneficial.  Any guidance on private money lenders would be very much appreciated.  As of right now, all of my real estate acquisitions will be in Maine.

Thank you in advance BP members!

Nick Burns

@Sean Richway How do you proceed with your application process?  Please email me at [email protected].  Thanks Sean! 

Regards,

Nick Burns

Thank you everyone who has sent me a colleague request or private message, however I have yet to connect with someone on this deal.  

Duplex in Maine

PP $95k

Rehab $30k (with contractors detailed/itemized bid)

ARV $185k

I'm looking for an asset based private deal for 65-70% of ARV, 12 month term with no PPP.

Regards, 

Nick Burns

[email protected]

Thank you Jim  for your response.  I emailed you.

I am seeking a private money lender.

Duplex is located in southern Maine.

PP $95,000

Rehab $30,000

ARV $185,000

This is a non-owner occupy duplex.

Currently not under contract, making offer once eligible for investors.

I have an itemized bid from my contractor.

I am interested in an equity based 65-70% ARV loan for 6-12 months with no pre-payment penalty.

Please let me know if you are interested in financing this opportunity.

Regards,

Nick Burns

@Sean Richway I tried your email, not sure if you received it (probably went to spam).