All Forum Posts by: Ziad Hamati

Find couple of contractors and have them walk the property with you to give you a rough estimate

I do not think books will help that much to be honest. Will have to learn on the job, or partner up with an experience investor to learn from him.

I also lack experience in estimating repairs since i have only done couple of flips, but:

1. Talking to several contractors will give you an idea if someone is overpricing or not. 

2. Definitely asking a lot a question to contractors

3. Reaching out to investors in the area to get their input.

When it comes to rehabbing, you have to be there physically or hire someone to oversee. Cant just trust contractors 

Sorry not a straight forward answer i know :(

 I second Tim.

Just need to figure out how hard is your money working for you. What return would you get if you invest the $150k else where? 

Hello

I have a distressed property under contract and currently raising money from friends and family to fund the rehab.

Investors will be debt partners only, which means will only be returning their principal + interest after I cash out refi.

It is my first time doing that so would like what are the paperwork behind this.

1. I will be drafting a promissory note that lays out the terms.

2. Do I need to put the property in a LLC at closing?

3. When I cash out Refi, i guess my CPA will issue the 1099?

Any help is appreciated.
Thanks

John, I have two lenders who finance up to 8 units. We are not commercial lenders thus we do not look at NOI. We look at the DSCR (Debt Coverage Service Ratio) , this means the loan is qualified on the cash flow of the subject property.

Since it is a Non-QM product, each lender set their own guidelines. We can do those loans in pretty much any state. 

I definitely suggest you reach out to me to further explain. 

The lender will monitor the insurance to make sure you have one in place. But they will not monitor the DSCR ratio.

Jake,
Are you a W2 employee or Self employed? Do you have 2 years of employment? We do not care much about the car balance, but rather the minimum monthly payment on your car.

To accurately find out how much you can qualify for , I suggest you reach out to a local lender since they know your market better than I do (i live in texas). I am not sure what is a typical tax rate, and how much do homeowner insurance run for.

Assuming a 2.5% tax rate, $2000/mo homeowner insurance, no hoa, the maximum you can qualify for is $350k-$400k