All Forum Posts by: Amily Yi-Chieh Tseng

@Jonathan Klemm Thank you! That’s be great! I’ll PM you if that’s ok.

Hi everyone.  We're seeking for construction funding ideas/suggestions in our case...  

Me and my husband are looking into starting a residential assisted living business.  My husband is in the medical field and I'm in the real estate field.  For us this is a perfect idea, an ultimate cash flow real estate investment that combined both of our profession & passion.  

At first I was looking into BRRRR method, but the pricing in our market (Northern Illinois) is too high we can't afford to buy (nice size, nice neighborhood) and then rehab into a suitable home/facility. I've also considered renting a place to at least get the business started (gain experience & business history) but suitable house is hard to find. So we switched to potentially build our own, also live in there for a little bit while we stabilized the business (instant equity + House Hacking + high cash flow business).

I have one paid-off investment property (MV about $210K and will NOT sell) so I was hoping to utilize that to pay for the land and some other little stuff using HELOC. But that fell through due to my husband's credit history years ago and my self-employed income not enough to help. Seller financing is possible but the main problem is construction loan. We have some stock & retirement saving we can potentially pull out but I'm trying to save it for our last resort (and it's not enough to fund the whole project). I estimate the construction would cost around $400-450K (+ land $87K), est. ARV maybe around $600-700K (we plan to do 8-10 rooms and there's no similar comps nearby). But obviously construction loan is the issue here.

One of the construction loan officers I talked to, he wouldn't even like to take a look of our documents and just rejected me nicely after our chat about our situation.  I also looked into SBA loan but it require direct business experience.  Everything starts to make me think twice if we should even keep looking and just wait a year while we build up the credit and income more.  

We currently are under contract for this really nice piece of land with a pond on it and we have to decide either to give up or not soon.  Any suggestions would be greatly appreciated!  Thank you! 

@Kerry Baird you're amazing!  Thanks for sharing!

@Marcus Auerbach

Thank you so much. This is very helpful. I’ll definitely talk to the Lo and shop around more too.

@Marcus Auerbach great advise.

Thanks everyone.

One more follow up question. We actually plan to use this property for business purpose and we will/can (if needed) live in there. Does lenders like to hear that we can actually generate income using the house? Or they discourage that? Thank you.

If a property is listed for $450K, I'm pre-approved for $410K, but I do have a HELOC ($140K) to utilized and cover both the DP and the $40K difference, how should I put it on the offer? Would the mortgage company have any reasons to go against this offer and not giving me the mortgage? Thank you!

Thank you so much @Elizabeth Klingseisen!  The property is free and clear though so I guess Seller Financing it is.  

Hi BPs! 

For a "Lease to Own" deal, if the buyer decides to purchase the property, can the buyer "refinance" to purchase the deal?  Or is it considered a regular loan and DP is required?  Technically, the house is not under the buyer's name so it shouldn't be a refinance situation, am I correct?

We're hoping to put a deal together using either "Seller Financing" or "Lease to Own".  The property needs rehab ($50-70K), so we're trying to figure out if not using cash-out refi, how can we repay the rehab loan.  

Thank you!

Hi everyone, 

Like @Marc B. and @Faiz Khan, I have not taken any courses yet but I always think twice would it be better if I take one!?  Seeing your reply makes me feel a little better.  We're on the planning stage, so far I was able to gather or create most of the documentation by myself.  If you search hard enough you can find a sample for most of them.  And I listen to any relative videos I can get my hands on, plus my husband is an RN is a great help too of course.  It's scary though, I always wonder if I did something wrong and what if we got sued due to my mistake?

Our biggest issue so far is to find a suitable property.  So far I found three cities within our target area (Northern Chicago suburb) that accept residential assisted living.  Out of the three, one is a high income community but the other two are just right next to it.  Obviously, a ranch would be the best, size has to be big enough, with plenty of space for parking so families can come to visit, and if it's located at an easily spot location would be even better.  We don't have a ton of capital so we have to be careful and don't go crazy on spending either on the house itself or remodeling.  

Does anyone here work with an investor?  Can anyone share your experience?  Is it beneficial and take some load of pressure off your back?  Due to the limited capital, we plan to start with just 5 beds, is it even worth working with an investor if it's only 5 beds?  If anyone is willing to share or chat, I would love to learn about anything!  And hope soon in the future I can come back here and share my experience too!  Thank you!

@Jason Mendoza did you end up opening a facility of your own?  Thanks!