All Forum Posts by: Robert Medina

The ARV is 460000. Not planning on doing a cash out refinance. Just refi to get out of private loan and reduce interest rate

Hello, so i hoping to get some input on a current situation that i am in. So i have a property that I have under  contract. I have 2 options a private lender or fha construction loan. The sale price is 315000. The fha is an fha 203k loan which is a construction loan tied into the home loan. The construction costs are 30000 so the total loan for fha loan is around 345000. The fha cash to close is 20k. The house is uninhabitable at the moment hence why I was looking at fha 203k loan. The private lender is loan is offering a 3 month short term loan to finance the property and all fees and closing costs and then I would be responsible for the construction costs. The private lender is 12 percent interest only with no early payment penalties. It’s a ballon loan so interest is due at the end of 3 months which I was going to roll into the refinance. I plan to refinance out of private loan into conventional after construction. So I would be around $10000 in interest at 3 months. The fha loan requires a minimum of 6 months seasoning before I can refinance and the fha has a high interest rate of 8 percent until I can refinance because I have already locked into a rate a month ago. I’m wondering if the private loan seems to be the better choice. I wouldn’t have to come up with any out of pocket except for construction costs and with the fha I have to use a licensed general contractor for everything which I believe is costing me more money than I would spend hiring contractors that don’t need to be licensed. Most of the work is cosmetic and doesn’t require permits. My fear is not being able to refinance after 3 months and being stuck in private loan. The house has already appraised 100k over buying price so the house will have 20%+ equity arv. Any thoughts?

Hello, I am a fairly new real estate investor and I have a property that I am looking at that has some renovating that needs to be done. I am looking to find a good SOW template that will help me organize the projects. Or maybe even a website that walks me through the process of renovating. I have a general idea of what needs to be done but I would like to organize it the best I can. I have a contractor and a budget for him. I am fairly educated in construction and want to be able to do the work that I can and have the contractor do the stuff that would take me too long to do. I was thinking maybe a sow checklist or something similar. Thanks

Ok thank you 

Hello, I am a fairly new real estate investor and I have a property that I am looking at that has some renovating that needs to be done. I am looking to find a good SOW template that will help me organize the projects. Or maybe even a website that walks me through the process of renovating. I have a general idea of what needs to be done but I would like to organize it the best I can. I have a contractor and a budget for him. I am fairly educated in construction and want to be able to do the work that I can and have the contractor do the stuff that would take me too long to do. I was thinking maybe a sow checklist or something similar. Thanks

Had appraisal and it came back well over offer accepted price. I was considering a bank loan but like I’ve said interest is high. Maybe a secured loan. They have much lower interest rates 

My original home was purchased with conventional loan and current property is also conventional. I bought it April of 2022. I had some extenuating circumstances happen and ended up having to rent out the house in September of 2022. Now I have renters in there and the current property is much closer to work and accommodates my family size. I had already expected some pushback from underwriting so I had proof of residency for when I was living there and had a few lender letters submitted as well to explain the short occupancy period. 

I had everything running smoothly until I had some pushback from underwriting. I have another home that is here in Colorado so this recent home purchase would be my second home. I was trying to purchase as primary residence because I am renting out my other property but underwriting is saying I didn’t wait long enough to start renting out my first property so they are saying because of occupancy issues they are wanting me to put 20 percent down to buy this property. Treating it like an investment property. I do not have enough funds for that because I am having to already bring 30k to the table for closing costs and construction. So I’m looking for creative solutions to this. I was thinking about a loan but interest is so high and I was also thinking about hard money. I’m just not sure 

Hello I am in the process of purchasing a single-family home in Denver, Colorado and I am having some issues with funding. I am looking for advice on creative ways to possibly find a home purchase. If anyone has any ideas that would be great.

Thanks for all the feedback, all of it is very helpful. I have been thinking more about my situation and wanted to know what this community thought about me at least getting the laundry out of the kitchen and installing in the bedroom but in the closet or in the corner of the bedroom. Then I wouldn’t be necessarily losing the bedroom. Is it weird to have a stackable in the bedroom? Then I could still advertise it as a bedroom or an office space etc. something I didn’t mention in the initial post is the ceiling is slanted so it’s too short to put stackable in the kitchen. It would have to be a side by side laundry set which takes up more space. I don’t have the funds right now to convert bedroom into bathroom.