All Forum Posts by: Vinay C.

Quote from @Faiz Kanash:

Sorry if this isn't the correct sub to post in.

I'm a house flipper, I primarily do fix n flips and recently got an offer from my hard money lender where they want to fund me up 90% of the cost for multi family properties. I built a pretty solid relationship with them so I suppose thats why they're offering so high for me. However, this is simply just a fix n flip loan, not a DSCR loan. So, it'd be a 12 month of interest only payments before full principle is due.

So, my strategy is the following.. Similar to BRRR I believe. Use the hard money fix n flip loan to acquire the property, do necessary repairs(If any), and just refinance the property into a conventional mortgage. However, I wasn't sure if its difficult to refinance a fix n flip loan into a 20 or 30 year loan. The last thing I'd want is to be unable to refinance into a traditional mortgage, then i'd be stuck with a rather massive bill to pay at month 12 that'd i'd be unable to actually pay haha. I'd probably wanna cash out refinance, and only pull out the 10% I put into the building, but thats really it. Also, any specific lenders I should try to focus on? I've heard a lot about working with local banks.

Does my strategy make sense? Or is it unrealistic? Thanks!

Quote from @Badri Malynur:

@Ryan A Shumaker  All the packages mentioned above are good options if you are doing just a deal or two but if you plan to do multiple deals over the next few years, you may want to look at customizable funds provided by Avestor that combine the best attributes of funds and individual syndication deals. You can get significant savings for legal and compliance costs in addition to providing one PPM and one K-1 to your investors regardless of how many deals they invest in.  Please reach out if you would like to get more information. 

I'm in his program now and so I far I find it amazing.  As a newb, this is a great way to learn from people that have been in the business for a long time and have a LOT of students go through the program.  It's 50/50 split on the first 500K you make, but honestly, I'm happy to do it because this is a hands on program with great advice and strategies.  We both have vested interests in my success.   It's easy to get caught up in reading and going to seminars, but Phil's program is hands on and pushes you outside your comfort zone to make deals happen.  This is perfect for me.

@Vinay C. I got it from an investor that I was working with! I can share you his contact if you need it. Let me know

Hello everyone,

This is a beautiful deal that I'm doing in this current moment. I've bought a land in Calabasas, and I'm constructing a house. I intend to keep the property and recoup my entire investment + more.

Here's a breakdown of the deal:

Land Purchase: I secured the land for $200,000.
Construction: The construction of this impressive 4-bd, 3-ba property spanning 1800 sq. ft. is estimated to cost around $600,000.
Construction Financing: I've partnered with a lender, leveraging a construction loan disbursed in stages. This method not only ensures efficient funding during construction but also minimizes interest payments, given that construction loans typically extend over 12-18 months with interest-only payments.

After the first year, my expenditures are as follows:

Land: $200,000
Construction: $600,000
Interest: $60,000
Total Investment: $880,000

Here's where it gets interesting. Comparable properties in the area are currently valued at an outdated $1.1 million. However, the estimated value of my new construction, complete with a pool and ADU, is at least $1.35 million.

Capitalizing on this increased property value, I approach the bank for a cash-out refinance. Typically, banks offer 80% of the home's appraised value. With my home now valued at $1.35 million, this could translate to $1 million.

With the $1 million, I:

Cancel the construction loan ($600,000)
Get back initial land investment ($200,000)
Reimburse the interest paid on the loan ($60,000)
Plus,  I'll have an extra $140,000 .In essence, I not only recover my entire investment but I also put some money in my pocket.

But the story doesn't end there. I will rent out this new house, covering my mortgage payments with the rental income and steadily building equity over the years.

Let me know if you are interested in doing something like this in Southern California, I have my team (brokerage, lender, architect, GC) ready to go.