All Forum Posts by: Timothy Maloney

@Mark Ferguson Congrats!   Now just start flipping 25 at a time using bridge money so I can add a bull to the stable.    Seriously though - good work!

@Eugene Clervil - It isn't difficult at all.   Your corporation will be the borrower but you'd need to still guarantee the loan.    Inbox me if you'd like me to look at a specific property scenario.

Rates start in the high 4's and run to 8s depending on your property and your credit.

Good luck!

@Craig Schumacher

Here is my recommendation:  

1. Cashout refi the two condos - so long as you are reinvesting the proceeds into other CRE it should be OK.

a.  Assuming a decent FICO you can pull 75%-80% of the COST you paid at 5-8% interest (25 year term).    

2.  As you start acquiring additional properties keep the 100K in a savings account until you've used up the proceeds from the two condo refi.   100k in CASH looks great to underwriters.You should only be putting down 20% on these new acquisitions.   A little less if you can negotiate seller held seconds.

3. When you start using the 100K in savings replace it as much as possible with rental income. This "Liquid 100k" will be your key to HIGH LTV and low rate loans.

Good luck! 

Hi @Cesar Lopez. You are right... Unrestricted cash outs are a bit tricky. Add to that the small loan amount and you are relagated to 1. Hard Money and 2. Small local banks. My suggestion is visit the bank who extended you the LOC and ask them. You might be surprised!

Good luck!

4%?!?!?!?   God Bless you @Luke G..    Most private financing deals I see are north of 10%.    Your attorney can draw up the simple agreement and place the proper UCC filings.   It is done every day and not as all complicated.    Best of luck in in NC!!

@Account Closed - There isn't enough information to tell you what might be turning lenders off.   Yes, we need to see the building itself be able to cover 125% of the debt payment but that isn't how we value the property.   The income approach (as your brief post suggests you might be focusing) is rarely used to determine a loan amount.   Yes, we look at the value derived from the income approach but we still loan on the old fashioned appraised/as-is value.

Inbox me with a bit more info and I'll tell you exactly why you are being dismissed.

Good luck!

@Malcolm Darensbourg - Personal credit is easy to get started.   Chase Citi Card and Capital One have secured credit cards that report to 3 bureaus monthly.   Keep loan balances under 20% of limit and you'll build a nice score in short time...  I think the limit is set at how much you send them.

Of course that's a score but not much depth.  To get depth you need years of on time payments and low balances PLUS a car note or mortgage.  

DO NOT apply for credit all over town.   Inquiries are killers these days!

@Jonathan West It will be nearly impossible to find a lender on a loan size of $25k.   Even hard money guys need 50K+ to get interested.   I know of no lenders who loan on a value derived from the income approach (Until you hit multi million dollar commercial properties).

Best of luck - Hopefully you can find a private investor/backer.

George,

You could use one lender for both. 90% of purchase + 90% of rehab up to a max ARV of 70%. Sure, the rates are high (10-12%) but you can accomplish your goal with minimal cash/maximum leverage.

Once the home is complete you can refinance up to 80% of value (lower if you have credit issues).

Good luck on the flip!

@Justin O'Kelley Aside from the contacts you can make on here there are meetups weekly in your area.   Check out meetups . com in your area.   There are normally very laid back and informative.   In my local meetup we have members belonging to larger associations and I was able to join them.   Good Luck!   Call if you need cash :)