All Forum Posts by: Tom Kuhen

I'm looking at a HUD deal right now in my market, and spoke with a local realtor who broke down how Sage runs things now. I'm just reaching out so I can hopefully get a better understanding of timelines since they took over. Please share any stories, good or bad, that you have gone through. I look forward to hearing from everyone.

Happy investing,

Tom Kuhen

Thank you @Leo Hefner for the tips, and thanks for the luck, I'll need it!

Hi @Percy N.,

I'm going to hopefully be putting in an offer on a HUD home soon, which in my region (Cleveland, Ohio), is managed by Sage. I was wondering how your process went to-date, and hopefully you were able to close on it by now. I hope to hear from you soon.

Happy investing,

Tom Kuhen

I was strictly asking for your guidelines to get a better understanding of what some private lenders are asking for. I know some common HML terms, but wasn't sure if private lenders commonly require points / percentage of interest similar to theirs. I know private lenders can choose to be a bit more flexible, but that's why I asked what you personally look for. @John Thedford

Thank you all for responding and clearing this up, I've shown openly shown my ignorance on the topic, and appreciate the help.

@Jeff Copeland Thank you for responding. Your third point was the biggest concern in what I was asking, and it makes complete sense that they wouldn't want to be a secondary lien.

@Luis Roel Thank you for the insight, I now have a better understanding on that subject. I'm sure you're right about getting creative, and that's what I'm looking more into.

@Will Barnard If I found a lender / JV partner who provided 100% funding for this deal, I would have no problem at all splitting the profit in their favor, especially since this would be my first project. I'd like to just get started already, and splitting the tail-end 60/40, 70/30 or however it would be, really isn't troublesome for me.

@John Thedford I've heard that quite a bit, to no surprise. Thank you for the help, especially being a private lender. If you don't mind, just so I have somehat of an idea, what are some of your common terms / requirements for lending?

@Luis Roel I understand now, thank you for making that clear for me. That strikes up another question you may be able to answer for me. I'm only semi-familiar with refinancing, so could you touch on that a bit? My understanding is that you essentially renew your mortgage for hopefully a lower rate/ payment, and pull out a percentage against the value of the home (example: 70% LTV) but does that start the timeline of the mortgage over again? Once again, I may be off on that thought process, but I don't know what the advantages/disadvantages are.

Thank you for your already informative post,

Tom Kuhen

Hello all,

I'm currently analyzing a deal in Cleveland, Ohio, and have a question about hard money lenders. I know that some common terms are: 2-4 points, with an 8-15% interest rate, over the course of 3-12 months depending on extensions and such. I assume it's not common practice, but has anyone heard of / had experience with deferring all of the points and rates until the end? I know at that point, it's similar to doing a JV in which one partner provides funds, and the other runs the rehab. If anyone has experience / knowledge about it, I'd love to hear how it went, and what other terms there were (if any).

Also, if anyone has suggestions for HML / JV partners that are willing to lend in the area, I am all ears. Thank you.

Happy investing,

Tom Kuhen

I've been trying to find creative ways to finance a deal that I am analyzing and haven't been able to find an answer to this question: Can I use a HML to cover the rehab. costs of a flip and down payment on a house, while taking out a traditional mortgage on the property? I am relatively new to RE and asking this question may show that. I asked another newer investor the same question, and the only thing that would be a concern is that the bank may not approve because it's not technically my money.

Example:

A house is listed for 60k, I put 30k into the rehab., and sell it for 130k. Instead of having the HML fund the 90k and paying the costs for however long (2-6 months), could I get a mortgage on the property, and use the HML to cover a 20%(or less) down payment as well as the rehab. costs? Then I would be only borrowing 42k and then paying the mortgage which would probably be a lower payment than the HML.

Are there any advantages to doing this (if it's even possible) / are there any disadvantages?

I may be missing something completely, and if I am, please don't hesitate to point it out.

Thank you,

Tom Kuhen

@Mark Gallagher I see now. Thank you for clearing that up.