All Forum Posts by: Rob Terpilowski

Hi All,

Looking for some recommendations for take out lenders for an out of state BRRRR I am looking at in Indiana that do loan amounts under $100k. I can't qualify for conventional financing so looking at asset based lenders or other alternatives.

Thanks!

-Rob

@Aamir Shah  Did you use a hard money loan to finance or use all your own cash for the acquisition and rehab?

Great!  I'm looking at investing out of state in Indy as well.

Contract available for assignment.  PM me for address.

Lot originally housed distressed mobile home, which has been cleared.  Lot has a garage structure and with attached unit that could be used for an office or shop.

Permits filed for 1600+ sq ft manufactured home, waiting for final approval.

Thanks Jacob,

I've worked with this particular HML on a few flips that I had done, and they have been pretty responsive when I've sent them a potential deal to evaluate.

I received the message from the wholesaler with the property details and with his ask price of $350k. I had been looking for multifamily so i immediately called and let him know that my GC would be calling him shortly to schedule a walkthrough with him. I also gave my broker a call to get an idea of ARV based on recent comps as well as market rents in the area.

GC called back later in the day with a estimate of the rehab, broker called back that evening with comps. I gave the wholesaler a call the next morning and offered $340k, he accepted. (Found out at closing the wholesaler got these under contract for $300k!) Then gave the HML call with the property details and numbers which they were good with, and closed in about 10 days.

Total time from receiving the message from the wholesaler until getting it locked down was about 18 hours.  I didn't walk the property myself (I trust my GC a lot)

 I feel like I am as there have been a number of issues that property manager has dropped that I've had to pick up, so needless to say I'm in the market for another manager.

 Thanks Erin,  the units are all 2BR/1BA, a couple of miles west of the Tacoma mall.  Good luck with your project!

Thanks! when I initially ran my numbers, I had assumed an ARV of $540k and rents of $1,100 per month, so was very happy to see the appraisal come back where it did a couple of weeks ago. Also the units ended up renting for $1,300.

Right, the community banks keep these loans in their own portfolio and so can be quite a bit more flexible with their own rules than the Fannie/Freddie guidelines dictate.   

@Paul Bowers, just updated the post with a clarification.  

1st position was hard money lender, funding portion of the initial purchase price and 100% of the rehab costs.

2nd loan was a HELOC on primary residence, reserved for this project.