All Forum Posts by: Steve Karpinski

These people were ready to close Tuesday I got the mortgage commitment letter and then the lender changed their lending requirements Friday. We passed inspection, the house appraised over the sale price, these people live in an apartment and didn’t renew their lease so not sure where they will live in April and there were no liens or title issues so not sure your reasoning it’s none of those things.

Thank you!

Sorry I already flipped the house. The project is done and the resale was going through on Tuesday. I have already been paying my private lender since August.

The new buyers were all set to close on Tuesday and the lender asked for proof of employment from the buyers which is causing a problem since the wife is currently home unemployed due to the virus but will go back to work once day cares can start again.

I would then have to pay additional interest and more points the longer than loan goes which to me seems unfair if it is totally out of my hands if mortgages are basically at a stand still. I can live with the interest. My profit will just shrink but the points to me is crazy. That is why I was asking the opinion of other lenders and investors on this issue. 

Just wanted other investors and lenders opinion on this. I have a private loan for a flip i am doing. The closing is supposed to be this Tuesday March 31. I already  got the mortgage commitment letter and everything was basically done and waiting to close. The buyer's lenders came back Friday and asked for proof of employment to still move forward on the settlement. The husband is still working but the wife is currently unemployed. She runs a daycare and will go back to work whenever the kids can go back. I am sure I am still going to have to pay my private lender but I just feel like this is totally out of my control I had the house sold and is a rare situation. I feel like I should just owe up until March 31. I pay monthly payments so my best solution might be to just ask him if he will allow me to defer the remaining interest since I can't really buy or sell houses right now. I signed the COV-19 addendum with the couple so we will still close it's just a matter of when. I offered to rent the house to them since all there stuff was ready to be moved Tuesday.

Is it possible to set up a partnership for one flip? We partner up, buy the flip 50/50 then once it sells the partnership ends? I do have my own LLC so I wasn't sure if it was possible to do a 50/50 deal without adding them as a 50/50 partner because I am still doing my own deals.

@Holly Thomas

Hey Holly. I saw this thread from 7 months ago and wanted to see if you ended up finding anything. I am in a similar situation. I live in Havertown and I want to buy a 2-4 unit and live in a unit to lower my living expenses. I have noticed the same problem. The numbers simply don't work in places like Springfield, Media, etc where I want to live lol. They are just way too high. Lansdowne is one of the areas where the numbers work but I feel the same way where I really don't want to live there.

@Yuriy Skripnichenko Can you please post the info about Delaware County. Thanks in advance!

I have an interesting opportunity where one of my family members wants to earn interest on his money. He told me he would hold the note on a rental or possibly 2-3. He is older so he said he would want a balloon payment at 5 years. I have been using direct mail for flipping and have gotten more calls on properties that fit better as rentals than flips. I'd rather be able to buy the ones that are great rentals than wholesale them. How would this work? I'd have him buy the property in cash and then pay him the mortgage until I can get a conventional loan? How long do you have to wait until you can refi? It seems like the BRRRR strategy might be better here because then I wouldn't need the 20-25% down payment for every one. Are there any other strategies I could utilize with my lender? What strategy would you use? I'd love to hear from more experienced investors. I am currently working on my first flip and own no rentals but am trying to focus on a niche for acquiring rentals.

I am currently trying to set up my funding for a flip. I found a local bank that loans on fix & flips and the terms seem better than the Hard Money lenders I've talked to. They will loan 75% of the purchase and 100% of rehab with a minimum $100,000 loan and the rate is WSJP plus 2% interest only, a 2% fee, and a 12 month term. Can someone please explain to me the breakdown of this loan. Lets use an example of a $100,000 purchase price and $40,000 rehab. What would I pay?

I'm looking to do my first flip and found a local bank that will lend me 75% of the purchase price and 100% rehab for a flip. I meet the financial requirements and have been approved so I am ready to go with them. The Bank's minimum loan amount is $100,000 and the rate is WSJP + 2.00% interest only, a 2% fee, and a 12 month term. I have cash to cover the remaining 25% of the purchase price but this is pretty much my life savings since I'm only 26 so I'd rather try and get lent the money. I have created an LLC so I've been looking into a business line of credit and I don't have any family who would lend me it. What are my other options?