De-risk: Reposition the asset out of HOAs.

@Steven De Lange - Congrats on your first investment in Myrtle Beach!

Hi All - My name is Jason Zang and I’m licensed realtor in MD, DE, and PA.

Quote from @Orlando De Los Santos: If i were to interview a Private money broker i would ask the following. 

Most work like this: Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 we charge $2,500 minimum)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 WeeksWe have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VA, WA, WV, WI, WY.

I'm not an attorney, but having them under a holding company LLC seems like a risk of having a judge rule that they are all part of the same company de facto, and liable for losses from others.

Companies with a high debt ratio or poor d/e ratio--which are a lot of companies-- won't sustain living in a high rate environment. 

Hi @Johnite Ryen Aguirre De JesusSorry to hear about your loss.Are you eventually planning on moving into the home?

While the overall returns (all else being equal) to the LP are lower when the sponsor gets higher fees and carried interest, you are paying for a certain level of de-risking your investment.  

Thank you @Lindsay Op de Coul and @Andrew Steffens for the advice, very much appreciated!