All Forum Posts by: Sunny Malik

@Nate Herndon - yes being capped at 66% DSCR constraints but it's weird because they're offering 70% LTV with an interest only loan. The process has been short of transparent, hence why I needed to get a second opinion on this stuff.

I'm also wondering if its contractually legal to do that without disclosing penalties after the arbitrary rate lock period. 

Hi everyone, 

Quick background, I'm a real estate investor with a high paying W2 job and credit score around 780. We're working on financing out of a current property and ran into some issues with the appraisal. As a result, we're calling another appraisal company out and it's going to take a few more days before we wrap up. 

The property we're dealing with is a bit unique as is the loan where it's a 1.0 DSCR and we're trying to optimize getting as much of our equity out as possible. At a 66% LTV, they're offering me 7.5% interest and $245k out. I was hoping to get closer to the 70% LTV and get $260k out. The only thing holding us back is again the appraisal so we're calling a new one since we had an appraisal done 5 months ago that came in at $430k and this new one is at $373k (there was a sqft discrepancy between the way each one was calculated). The new appraiser won't make any adjustments so we're calling a new appraiser to get the value of the home up so we can pull some more money out. The house is currently rented for $2,150.

My main issue is that the lender is claiming if I don't close by the 25th they are going to charge me 1.5bps per day until we close out since the rate lock expires. I was never told that nor have I experienced that before. I thought to reach out here and see if anyone's dealt with that before. Traditionally, I get re-pricing the loan per current market rates but charging me since we didn't close in 30 days since start doesn't seem right since the lender definitely had some lagging parts on their end and an insane due diligence process. 

Note this is my first time dealing with this loan broker and lender. 

I'd appreciate anyone else's experience in this and rec. on how to proceed forward. I have to refinance the loan soon as it's coming up on maturity on the 30th. With my current short term flip loan, I've already worked out a extra 30 day extension if I have to. 

Best, 

Sunny

@Bruce Woodruff - yes can you see them lighting coming in from one of the stair pictures there? The strips ordered from Amazon was the way to go! 

Hey everyone - I wanted to come back and share what the final recessed lighting looked like for the house! Thank you again for the support in this, y'all are awesome :) 

https://www.zillow.com/homedetails/33-Spence-Ave-SE-Atlanta-...

Hi everyone, 

We've been doing a lot of new constructions lately and are looking to work with a local bank in the area. We have 40 successful flips under our belt and are moving towards a more new construction model. We typically use Kiavi but their new construction process isn't a great fit for us and Lima One's rates aren't as competitive as what we get from our local bank. The only reason we aren't using our local bank anymore is because they aren't taking on anymore RE loans this year. 

Anyone work with any local RE banks in the area? Can bring large sums of deposits into their account if that's of interest too. 

Thanks, 

Sunny

@Scott E. - Appreciate the guidance! Our electrician is comfortable with the process and has already ran the wiring for it. His main question is where does he get the specific type of led lights like the one we’re showing in the picture? Since they are individual ones but all all interconnected. We’re new to the process and appreciate your input.  

@Bruce Woodruff
@Bruce Woodruff -Thanks for the input! Yes, the stairs are still open and we’re waiting to install these before finishing them up. I’ll try to get you a picture soon. Have you ever gotten the led light material for this and if so from where? 

Hi everyone, I am looking to install recessed lighting to stairs we're building for a new modern, luxury flip in the Atlanta area. I've included a picture of what I'm looking for, does anyone have any experience on where to order the material for this?

Hey everyone, 

I'm sure this question has been asked and answered before but thought to throw it out there after an especially interesting year. 

I have a list of off-market areas and specific properties I'm targeting. Who do others partner with that help streamline the process and lists for targeting off-market deals? 

Thanks, 

Sunny

Hey everyone, 

Does anyone have a good recommendation of wholesalers in the Atlanta area that focus on multi-family properties? We're looking to buy and can close fast. Price point varies, we have investors involved with some deeper pockets. 

Preference is in the general Atlanta area, open to other parts. 

Thanks, 

Sunny

Hey everyone - thank you for all the comments and support! We've received a few offers on it already but haven't taken any yet. 

I'll try to start answering some of the questions on here. As for the financial information, I'm going to hold off on sharing details until after the close. But yes, it was a massive renovation budget. 

When starting a house like this, my advice is to not to demo the whole house down but do try to get it as bare bones as you need. We had an engineer double check the foundation and make sure we were ready to build before we did. The good thing starting with an open plate is that it allows the architect to completely rethink the plans. We spent a lot of time thinking through the new design without completely changing up the house. For example, in the original photo you can see that were were 4 windows in the front of the house, we kept that same patterns and just eliminated one of the windows to better frame it up and the living room. 

Once you have your plans in order, you have to start with framing this whole house up. Our teams were able to move fast with a clear plan and no obstruction to move fast. 

A tricky thing with this house was that the original owners but a metal roof on top of their existing roof. Once we took the roofs out we were able to create a little more of an arch to give the house a better aesthetic look vs. keeping it so boxy. 

Let me know if you have any questions on the above. I'll provide another breakdown of what we did after the framing and key things to look out for in the process!