All Forum Posts by: Rashad Luckett

@Darrell Carter Looking at recent sales of similar homes in the past 6 months. I have had many appraisals over the past 2 years. I have studied each one in detail so when I am calculating arv for a new project I think like an appraiser would.

@Adam H. Mortgage is off as this is a line of credit not a mortgage. It's interest only and I only pay for whats in use. It's also difficult to calculate because this will be spread across multiple properties because I will use this same money on other deals. My repairs/capex are typically half of what you have because of the extent of the rehab. All of the big ticket items that could need repair are brand new.

@Peter M. I did some simple items like light switches and outlets. Some consistent areas of cost savings were the flooring and plumbing. The carpet came in at about 1.70/sqft installed from home depot. Plumber is my secret weapon. That repipe should cost 3-5k. He did it for 1200.

@Alan Feldman Found on MLS. HVAC was 6k. The interior color is called universal grey from Glidden.

@Ernesto Hernandez MLS

@Juan Monge 85%ltv 6% interest 18 months

@Calvin Lipscomb Did the link work?

@Joe M. Thanks. That is weird. When I view it I can see the link. 

Check it out.......

https://docs.google.com/document/d/1sznc5WkhNhsl7Y...

Purchase: 67k 

Rehab: 33k 

Rent: 1125/mth

BRRRR: Refi with commercial LOC @ 85%LTV, Appraisal came in at 130k

On to the next one.....

Originally posted by @Ned Carey:

@Chris Sukala agree 100%, assuming of course there is an actual benefit to it. Your situation may thread the needle of what is beneficial but most will not. 

Back to your original question. Simply have an attorney write up the loan documents between your company and you. This is not do it yourself stuff, at least not the first time. Look for an attorney that handles loan docs for hard money lenders in your area. you can use a separate attorney or use the one that handles settlement of the property for you. It shouldn't make much difference.

@Ned CareyI use it to pull my acquisition/rehab cash out as soon as possible so I can get to the next deal and not have my funds tied up. My loan amount ( which = my purchase + rehab) from my LLC is 75% or lower of the ARV (that is what the bank will refi). For it it to work you have to be good at calculating your ARV and rehab costs up front (need to be good at that anyway in this business).

@Chris Sukala Ned is dead on. This is better left to the attorney/title company but a quick google search of Illinois Mortgage Note returned the link below. I am in GA and mine look very similar. Again, I cannot stress enough, let the legal folks handle it. It must be properly recorded legally. Also, you should probably just ask the guy at your meetup what attorney he uses and contact them. If your shy, or otherwise don't want to ask but know his name , LLC name, or the property address, you can go to the courthouse and look it up yourself. All of it is public record.

http://www.freddiemac.com/uniform/pdf/3014.pdf