All Forum Posts by: Semilore Lawal

You can't unless you are a citizen. Best for a non US is 75%/100%. I line up deals for plenty of Canadians. They love their LPs or the LLC!

I'm actively looking for a Private Money source that will treat a qualified non US investor (meaning his set up with his entity and they can show you 100K+ in a US biz bank account) like a US citizen.  I've closed at least 10 deals for Canadians last 8 - 12 months.  Lots of them dying to get into the right markets in US.

Problem is, only two big box lenders really mess with a FN investor, maybe three.  Only 1 that I know of will offer terms to a FN who is a 0 and the only time I've been able to get that done is if the investor can show that 100k in a bank account.  Also, when times get rough and lenders shrink their exposure/loan volume the first program to get hit with adjustments or pause altogether is the FN bridge with rehab.  Why?  Cause on the lender's internal metric analysis of loan performance the loans that perform the worst over time are the FN bridge with rehab loans.

I think it's investor based.  I think if an investor is liquid and working with an experienced team who already has pushed 20+ properties through the entire life cycle from purchase to sale of finished product then they are just the money.  They're not lining up anything or doing any of the work.  The are joining an existing network with infrastructure and process and the process has proven results so the geographical location of where the person lives does not matter.  I believe I will find a PM source that will see it that way.  

ARV 400k.

Max project cost: 280k - 290k.

Purchase 220k

Rehab 60k

Project cost: 280k

This passes the number test.

No what would financing cost?

If good credit is involved 90%/100% program is possible

22k down payment

198k initial loan amount, 60k held in escrow

Total loan amount 258k.

What would that loan cost:

22k down payment:

7k in fees

1,000 in title work

1500-2k/month holding costs

500 - 100 in insurance for the project's timeline

Utilities like water and power for a few months: 500 - 1000

Then you'd need to front the contractor 10k so he/she can buy materials and front labor some money to get started, you get the 10 back at the end of the rehab.

So let's say it is a 5 month project timeline, this project would require 52k in liquidity to see it through to the end.  You have 20k you said, so you need another 30k - 35k.

 Go to a local meetup and get someone who is a private investor who can go in on it with you 

Would recommend partnering up with an experienced investor to get a higher leverage and to help you cover part of the downpayment. You can also do a seller second but the minimum investment is 5% down. You also must have done 2 prior flips

When you speak with other investors, have a quick sheet that outlines all of your numbers. I’ve seen investors doing this at other meetups.

I wish you all the best.

Totally agree with the wise counsel of @Greg Scott.

My recommendation is to get ready.  What are market rents based on possible renovations? The last thing you should do is over-improve so use this time to get the exterior in stellar condition, prepare a scope of work, determine tenant lease end dates and decide whether not to renew (and lose the cash flow) in order to renovate or whether you can do more modest upgrades while retaining those tenants.

Congrats on your acquisition.  Keep the cash flowing...

In Single Family you are usually (or should) fix the entire place up before renting.  Many people carry-over this thought process to multifamily.  With rare exceptions, taking occupancy to zero and then 100% rehabbing makes no sense.  On the other hand, renovating units while occupied can be done, but comes with significant challenges.  

In multifamily we try to do most exterior and common-area projects up-front.  Our preference is to renovate units on the the turns.  If a resident moves out, for whatever reason, then fix up the unit.  The old resident won't care that you've bumped the rent a lot and the new resident is only renting with you because they see value in your updated apartment.