All Forum Posts by: Account Closed

Try Iron Bridge Lending or Fund that Flip.  Check your local reia group for an investor friendly accountant

@Michael Cook we are in the same scenario. We are trying to figure out how to buy a property in a 55+ community and hold onto it for 3-4 months while we renovate/resell it. Have you made any progress on your search? We contacted the HOA today to ask if we signed an affidavit at settlement that we would NOT occupy the home would they let us buy it to renovate and resell it to someone who is 55+? Waiting on an answer... Hopefully some more folks would chime in if they have had a similar experience/success!

Ray 

Thanks @Stephanie Medellin It seems the LOC is the more favorable of the 2 options. Is it true that typically the local community banks are more open to working with a small business?

Thanks @Account Closed I have heard similar information about the versatility of the LOC. Hoping to hear some additional input from lenders and other investors!

@Sean Daugherty it might be an in-road, however, most of them probably have their systems in place and refined to what works best in their business.  I would circle back to the family member/business partners and confirm the interest and approximate availability of funds.  In agreement with what @Matt Lowery said many investors do have a bad rep about not being conscientious of a realtor's time. When we got started we went onto redfin and literally set a saved search (with our specific investing criteria)for all single family homes in every zip code of the counties we invest in. Probably a little overkill as it sends a ton of properties to our e-mail, however, it forced us to look at and pre-screen them and the neighborhoods they are in. Once we found a batch of places we wanted to see we sent the addresses to our realtor to schedule us to see them. We also give our realtor all of the after-repaired homes to list so it balances the low commission they got from the buy side. Our first several deals we actually ended up doing a JV with a local family friend. We located the property, ran the reno estimates, ran the comps/ARV and ran the entire project from start to finish. He brought the money and when it sold profit was divvied up.

Hi Victoria,

We have worked with 2 of them to date. They all unfortunately have the same product...really expensive money. Where they differ is in the nuances The key is in the speed of the turn around and how quickly you can get it sold. They don't like to share their money for more than 6 months although some are starting to loan for up to 12 months but I'm guessing the points/rate will reflect giving you the money for a longer time.

We have used Iron Bridge Lending out of Portland, Oregon and Fund That Flip out of New York. I'll give you what we believe are the pros/cons of each and you can decide if they fit your need. Iron Bridge: PROS--lends their own money so they are slightly less robotic in their underwriting process. They don't make you pay for an appraisal--they have in house personnel who value each deal based off of public information for comps. They don't make you pay for an attorney to represent them--you handle the closing with their in house personnel. CONS--Tend to be a little more conservative on ARV when underwriting a deal. At times when I wanted to buy another property their funds have been "low" since they lend their money so I usually try to get a 2-3 week jump on asking them about availability of funds. We have bought sold 2 to date and have another one of theirs selling end of Nov.

Fund That Flip: PROS--They are a crowdfunding platform so have never seen them short of funding. Aggressive to work with you on their points/fees/rates after your 1st deal is successful. CONS--They perform an appraisal on every deal which they make you pay for. I unfortunately had 2 appraisals come in way low on ARV so we had to go back and contest the appraised value which was a pain in the butt. You also pay a 1000-1500 fee for an attorney to represent them. We have bought and sold 2 to date and have 2 more of theirs selling in the next 3 weeks.

You may also want to check at your local REIA. I know there are more and more local HML. Hope this helps some! I'd be glad to make an e-mail intro to see if either can help you. Let me know if you have any other questions.

Ray

@Sean Daugherty Congrats on taking the plunge--Don't be discouraged by the nos and the not yets. They are the groundwork for a killer story when you finally make it! What is your plan to secure the private money? Where are you looking for your properties--MLS or off market deals? With regard to sourcing a mentor I've heard of guys locally reaching out a fellow investor like you have and offering to help them for free with labor items like mowing grass, cleaning out a property, etc in exchange for help getting your business into its 1st deal.

@Ray Agosto Good Luck!  Don't accept 'No' for an answer.  Figure out how to get to a Yes--build the rapport with the staff at the office.

@Steve L. do you actually have the property under contract? Don't anything up front, however, you should be prepared to be able to verify that you have access to some capital to bring to the deal as most HML only fund 65-70% of ARV. We have worked several times with a lender out of Portland, Oregon and have had great success. Send me a message if you're interested and I will get your their contact information.

Ray

@Ray Agosto we have had better success in person.  When we explain to them the reason we want the code violations is to try and connect with the owners of these dilapidated properties and buy them to actually clean up the 'ugly' properties in the town they are glad to help.  Plus real estate is a people business and each repeat interaction will strengthen your rapport with the 'gatekeepers' of the golden lists!