All Forum Posts by: Shana Patrick

Hello BP Community!

I'm here once again to pick the brilliant minds of Bigger Pockets professionals!

So we've finally found our first flip (we actually put in an offer on two houses that have great profit potential)

We have our team ready (attorney, contractor, accountant, etc) but we've been shopping around and can't seem to find the perfect lender. (perfect for our situation that is.)

We both are currently not working and formed our own LLC and have been dedicated to Real Estate.

We have about $15K in our bank account from wholesaling and are looking for a HML or Private Lender that doesn't require any down payment.

We unfortunately don't have the resources most people do such as friends or family to lend from.

Here's the specs of our deal: (Our deal is in NJ.)

Purchase: $80K; Reno: $45K; ARV: $220K

Do any of you happen to know a private lender or HML that don't require a down payment?

I look forward to hearing from you all!

Hello BP Community!

I'm here once again to pick the brilliant minds of Bigger Pockets professionals!

So we've finally found our first flip (we actually put in an offer on two houses that have great profit potential)

We have our team ready (attorney, contractor, accountant, etc) but we've been shopping around and can't seem to find the perfect lender. (perfect for our situation that is.)

We both are currently not working and formed our own LLC and have been dedicated to Real Estate.

We have about $15K in our bank account from wholesaling and are looking for a HML or Private Lender that doesn't require any down payment.

We unfortunately don't have the resources most people do such as friends or family to lend from.

Here's the specs of our deal: (Our deal is in NJ.)

Purchase: $80K; Reno: $45K; ARV: $220K

Do any of you happen to know a private lender or HML that don't require a down payment?

I look forward to hearing from you all!

Does anyone know if you can negotiate the contract yourself without technically hiring an attorney for the whole deal? (but more so just hiring the attorney for document review)

Hi BP Community!

I currently have two houses I'm working on in NJ. I have an investor who is looking for flips and rentals. My problem is that online most BP members are saying that they provided the Purchase and Sale contract. In NJ, the agent is providing us the contract. (Is this normal?) We were able to get over that. The real issue is that we must sign the contract before we get to modify it. (Assignment clause, deposit reimbursement, etc.) One house that I just received the contract on states that if the deal falls through, the agent gets our deposit (He originally asked us for 10% deposit - which i thought was quite excessive and worked him down to 3%)

Is it a must that we have to sign the contract before we get to modify it to our needs? When we told the agent that we wanted out lawyer to review it, they both stated that the lawyer can discuss negotiations during Attorney Review. However, we don't feel comfortable signing a document that we don't agree with. 

Is there someone out there that has dealt with this type of situation in NJ or anywhere else?

 Thanks for the feedback Elio! However as previously stated that is not an available option.

Hello BP family!

My business partner (my longtime boyfriend) and I are joining together to flip our first home in the Tristate area.

We are looking to get a HML, however we've realized that whether we are doing a loan that covers 80% of the Total Costs or 70% of the ARV we are left with a huge out of pocket expense.

My question is how do people usually come up with the money for the other 20-30%?

Do people take out an additional loan?

Please note that we are a young couple with middle class income. We do not have any 401k's or IRA's to take money out of, and our families are not loaded with cash to borrow from.

I'm just trying to understand because I highly doubt everyone doing HML's have that much money to just put up like that.

I look forward to hearing from you all!

Thank you,

Shana

 Thank you! This is great advice, we have set our eyes on some other markets now and are now more focused on finding a good deal in an OK market as to one that's super competitive.

Also, thank you @AnnBellamy your knowledge has been greatly appreciated as well!

 Yes Chris, I saw your response the other day. Thank you and everyone else for the advice, no need to shake your head.

Have a great day.

 Hi Chris,

Thanks for your response. Do you know another market that would be beneficial for a flip?

As we all know the market in DFW is very hot, do you think this would be a disadvantage for us trying to flip our first house?

We were thinking of going to a private money lender that reached out to us and he has offered to pay 80% of the total cost (purchase, rehab, closing costs & 6 months IO) or 70% of the ARV. He mentioned that we had to fill in submission forms, we didn't get a chance to ask what those forms were because it was after business on Friday when we saw his reply. Are these general forms like any other loan request form?

The only problem about doing a flip in DFW is the travel during the flip, do you believe it would be better for us to get a sublet during the flip and stay down there until it is finished or to stay for 2 weeks there and come back to NY for a week and go back again?

I'm sorry for all the questions guys, looking to get some well needed advice from my fellow BP community. :)

I look forward to hearing from you all.

- Shana