All Forum Posts by: Stephen Hundley

Good job getting this one done. A few things you should look at: 

1. Profit margins that small are not worth all of the risk. Less then 10%, that's a pass. 

2. You make your money in the purchase. This property was way over purchased. 

3. Sounds like you need to ensure you have a better contractor. Projects that go over budget more then 10%, are pushing the limits of failure. You preserve the money you made in the purchase with the rehab of the property. 

Good luck in the future. If I can be of assistance, feel free to contact me. 

Be careful. Month to Month leases are much harder to finance. It also seems like there is some deferred maintenance, which I would request a credit at closing to take care of it. I may also push the seller to deliver the asset with long term leases in place, since he/she has the relationship with the tenants, let that person do the work. The pricing seems high, and you may have trouble financing such an asset. 

Mike,

#1: Collateral Value (only 65K) will give you financing problems. Many lenders will not accept collateral that is under 75K - 100K in value.

#2: Commercial Banks right now are very tight on financing portfolios of Residential Real Estate. There are only a few banks that are doing product lines like this.

#3: The value of the property is one thing, but you must ensure that the debt to service coverage ratio is high enough to even interest a bank. With property tax rates being a little higher in Michigan currently, that will require you not only underwriting your deals from a prospective of value (equity) but also cash flows, and current market conditions. Factor 1.25 on DSCR, and you should be fine if you are over that ratio.

Stephen Hundley

EZ Bridge Lending

EZ Bridge Lending can help you with your deal. We offer excellent fix and flip financing. Since your deal is rehab going above the purchase price, we would need a 10% - 20% LTC contribution on your behalf. We can close very quickly, 10-14 days. Shoot me a message on here, and we can exchange contact information. We never charge upfront fees!

To the BiggerPockets.com Community Members;

EZBridgeLending.com is open for business, and we are closing clients each day. With over 40 years of combined real estate experience, EZ Bridge Lending knows how to fund your real estate deals.

My name is Stephen Hundley, and I have worked in various real estate related fields for the last 20 years. I was the Vice President of Hawthorne Capital, which was Chicago's largest hard money lender. I have raised over $5,000,000 dollars for my own real estate businesses.

After taking a few years off and taking care of some family situations, I have now reconnected with my old relationships in the banking world. EZ Bridge Lending has programs that are designed to help real estate investors grow a portfolio of investments. Whether its commercial or residential, whether you need fix and flip monies, or equity, EZ Bridge Lending has the experience and the relationships to take your business to the next level.

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There is still tons of inventory that require good infill development strategies to put a homeowner back into the empty house. Commercial Development and Redevelopment is required across all 50 states. Right now, investors need an experienced financier that knows how to work the debt and equity markets. Savvy investors are still purchasing assets for less then the cost to build.

I invite everyone in the BiggerPockets.com community to connect with me. In fact the next 100 community members that connect with me will receive a 3 Night / 4 Day stay in Las Vegas (Airfare Included.)(Taxes, Fees, and Surcharges must be paid Individually.)

I personally look forward to being of service to real estate investors that are looking to grow!

Sincerely,

Stephen Hundley

EZ Bridge Lending

www.EZBridgeLending.com