All Forum Posts by: Sean Cole

As I go out and raise money in Cincinnati to provide private lending/hard money loans, investors are nearly unanimous in wanting 12% on the very low end and 15% on the high end.  There's a few local banks that do rehab loans at 85% of project cost, but sometimes they crawl so far up your rear end that you can taste them...

I get your pain on paying points & high closing costs, but I think the most important thing to consider is your cash on cash return for the project and the difficulty in securing the financing.  For our business, we lend on houses that we sell, so there's a never execution risk for our rehabbers/borrowers.

Good luck and welcome to the party!  Mind if I ask you to share your numbers on this project?

A nice pedestal sink might work there, but you'd not have much storage unless you did a built in medicine cabinet.

Good luck with the deal! Do you know if the house was purchased from the MLS or off-market? I will say that investors in NCH are generally getting 30% or better cash-on-cash returns - 20% is what folks in Mason, West Chester, etc. will go down to, but it sounds like you have a partner you trust and you're in a deal making money. There's no money to be made sitting on the sidelines!

When I talk to investors from out of Cincinnati, they're constantly shocked that $25k-$35k rehabs are the norm here for houses under $200k ARV.

Welcome to the fun, Andie!  Competition is pretty fierce for deals in northern Cincinnati suburbs (west chester, mason, etc.), but I can't speak about Dayton.  Sounds like you're looking for rentals?

 Darrin's right.  Too much capital can be a bad thing, but it's impossible to go bankrupt without debt.

Without a doubt, the hardest parts of rehabbing houses is finding the right house and managing contractors.  Contractors, no matter how great they are, seem to wake up stupid one morning and run off to the next job without completing yours (or worse, doing a half-hearted job).  My biggest advice for dealing with contractors is to 1) do not EVER let a contractor be involved in design decision and 2) do not EVER tell a contractor what you want done and then ask for a price - tell the contractor what you want done and what you're willing to pay.  Contractors almost always price a job based on what bills they have due in the next week or 2 and not on the difficulty of your job.

Yes, that's us.  We've raised some money to be able to provide financing for rehabbers and can say that it's certainly a nearly full-time job to work just that portion of the business.  We do a lot of asking for referrals and marketing to try to get in front of people who fit the demographic of someone who may be interested in providing capital for rehabs.

 Lots of investors in Lebanon, at least in my network.  I don't even bother looking for deals up there because the locals scoop them up.  How far south do you "know?"  I find deals in Maineville-type areas for our Lebanon folks because it's still close to home.

 Chuck, I'd love to connect with you.  Just about any deal we can both make money on is a good deal to me.

Welcome to the group!  If the deal is right and we can both make a deal, I'd be happy to market to my list of 1400+

GCREIA is a pretty good place to start building your own list.

I use American Homeland for my wholesale deals.  It's gone well enough that I know participate in an Affiliated Business Arrangement with them.