All Forum Posts by: David Wales

Thank you to everyone for replying, just wanted to give you an update. So we have been able to find a local private lender who is willing to act as guarantor for much less than the original Guarantor options that we have. We have ordered the appraisal and I’ve been told that we will have it back in 10 days so we are still on schedule to close on the 27th for now… Fingers crossed! Thanks again for all the help.

My partner and I are currently under contract for a piece of property in Charlotte NC that includes a single family home, two duplexes, two triplexes and an empty lot for $1,000,000.  I own a construction company and have established a 401k in which my partner and I's 401ks have been rolled into and the fund will invest in the property for the 30% downpayment.  We had conventional financing in progress but at the last minute bank noticed that this property has no rental history available (former housing by a local ministry for single mothers) and they wanted to see liquid assets in the range of $500k which we do not have.  We found another bank to fund the deal but have run into a similar situation but to a lesser amount and they want a guarantor with liquid assets in the $200-300k range.  Every person willing to do the deal as a guarantor has wanted a substantial amount in exchange, more than the deal can afford.  

An additional hiccup in the project is that we are currently in breach and at risk of losing $50k in earnest money because the first bank waited until the last minute and we passed our original closing date.  We have been attempting to get the contract extended but the owner will not sign until a bank provides a letter stating that they will fund the project.  The bank will not provide the letter without the aforementioned guarantor.  

We are looking for any advice or any recommendations on how to get the deal done or at least get our earnest money back.  We are currently scheduled to close on Feb 27th if we can get our funding in place.  


    

Meet-up for real estate investors of all varieties and experience levels. Discussions will include house flipping, rental properties, Multifamily properties, commercial investments, financing options and more.

Hi Kathlene, glad you messaged me, we have another meeting tomorrow night at 6:30 at Leroy Fox.  Hope to see you there!

Meet-up for real estate investors of all varieties and experience levels.  Informal discussions about all things real estate, topics may include house flipping, rental properties, multifamily properties, commercial investments, financing options and more.   

@Timothy, I am not really looking for a true partner on this one since it is a smaller buy and hold and I plan on refinancing in 3 months so there would not be much interest earned to make it worth while. 

@Marco, I am working with a hard money lender already for the deal but was hoping to use their fix n flip loan for the renovation and roll into their 30 year rental loan after renovation and renters were in.  I reached out to other HM lenders but all would require moving the closing back 10 days minimum. 

At this point so I can still close on Friday, I am going to just use my own money for the downpayment and take out the 30 year rental loan. I have a 100k business LOC that I can use for the renovation and will continue with the refinance down the road when reno is complete and I have tenants under contract. Thanks for your help!

I am scheduled to close on a triplex property in Charlotte, NC near uptown in an area where very few multifamily comparables exist. I was intending on executing the BRRR strategy but my financing has hit a roadblock due to the lack of comps. My funding was scheduled to be a hard money flip loan because the property needs renovation and the listing required a cash buyer. The lender has indicated that the very few comps (none that have been reno'd) that are available do not support the ARV indicated of $350k. The appraisal has not come back but we are planning for the worst with it coming in around $260-270k. The 2 options that I have currently are to below:

Purchase $250k, Repairs - $50k, Rent per month - $1100-1200 per door, NOI - $2,500-2,800

$2,500 earnest money, $500 DD

1) Continue with the fix n flip loan at 85% ARV and hope for appraisal close to ARV.

2) Proceed with Rental loan @ 70% ARV, private money for 30% downpayment, fund renovation out of pocket.

3) Please Help with additional options!

4) Please Help with additional options!

5) Please Help with additional options!

Thanks to all who came out for the meet-up on Thursday, we had a good turnout, about 10 including my wife and I. Conversation was great, investors at all levels of experience attended which made for great discussion. I plan on making this a monthly meet-up on the first Thursday of each month. I have organized a Facebook page for group communication, any updates and meetups will be posted there. Hope to see you all again next month. https://m.facebook.com/Carolinas-Real-Estate-Entrepreneurs-2007333016153634/ Merry Christmas, Happy Hanukkah, and Happy Deal hunting!

Event details below.  

• 12/07/17 05:00PM - 06:30PM
• Draught Restaurant and Bar (behind BOA Stadium)
  • 601 S Cedar St Charlotte, North Carolina 28202

I have posted an event on the BP events page for this meetup. I went ahead and scheduled it for Thursday, December 7 at Draught Restaurant & Bar from 5:00-6:30. Hopefully everyone who has expressed interest can make it!