All Forum Posts by: Steve Cady

Great Information!  You may also want to try the south suburbs.  Better chances to fine value add properties there.

Looking for recommendations on an attorney to help me set up my business entity.  Might be a little more unique than other structures so I'm looking for someone with creative experience.

Thanks!

Rehab took about 3 months then another month and a half for FHA process. I contracted everything out.

Just finished my first flip.  Didn't make a killing but still turned a profit while learning the ropes.  Gonna use that knowledge to make the next one a home run!

Purchase     $81.5K

Rehab          $54K

Carrying      $7.1K

Closing        $15.7K (including commissions, credits, etc)

Sold              $170K

Profit            $11.7K

I'm getting prime minus .62 on a HELOC on my primary residence that I use to pay cash for flips. Obviously it changes as the prime rate does but based on the current prime rate I am getting 3.63%.

Can anyone recommend a financial institution (bank, credit union, etc) in the Denver area that will do a HELOC on a rental property that's owned free and clear? I want the money to pay cash for flips. I'm using this strategy with a HELOC on my primary residence already and it has worked out well for me. I like the flexibility of a HELOC verses a cash out refiance because I can use the money over and over again by paying off the HELOC between flips and pulling it back out when I get the next property without having to pay the interest I would have to if it were a cash out refinance when the money wasn't being used between flips. (unless someone can convince me otherwise)

Thanks

@Merritt Noel Maybe I should clarify. I had the HELOC (from my primary residence) in place before I purchased my properties. Once the HELOC closed and I had instant access to that money, I made my offers and purchased both my original and now second property for cash using the money from my HELOC.

Lather, rinse, repeat!  

I use a HELOC to pay "cash" for my flips.

I am new to this so I have my first property that should be completed and on the market in the next few weeks. I am also waiting to get an offer accepted on my second purchase later today. I have the same draw and repayment terms that you referenced but I was able to get my initial APR at 3.13% (prime - 0.62%) but that went up to 3.38% in April when the FED raised the prime rate. Lather, Rinse, Repeat!