Graham Lemly
Financing Strategies for house I want - Hard Money, Rehab or Conventional?
4 January 2025 | 1 reply
Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?
William Causey
Flexible loan terms vs Fast Closing
13 December 2024 | 4 replies
If you're competing for a hot property or need to close quickly, fast closings can make or break the deal.
Mark Forest
Matt Scott
20 January 2025 | 9 replies
From designing the marketing materials to engaging and closing the prospective investor Matt and his team have every aspect of this training covered.
Account Closed
Non QM lending
9 January 2025 | 7 replies
Account Closed said, income and assets are the only "hassle" with a conventional loan.
Dylan Gomez
Inherited a property and remodeled it now its ready to sell
28 January 2025 | 11 replies
You can identify a replacement property within 45 days and close in 180.
Dan Thomas
Airbnb claim process
4 January 2025 | 19 replies
Do you by chance have it written anywhere to close all doors and windows?
William Taylor
[Calc Review] Help me analyze this duplex in Michigan - are these numbers correct?
12 January 2025 | 12 replies
Principal Paydown: $2,441 Total Gain: $58,317 ROI: 360.32% (on $16,185 upfront investment: 3.5% down payment of $8,715 + 3% closing costs of $7,470).Year 2 Analysis Cash Flow: -$752 Home Appreciation: $6,120 Principal Paydown: $2,617 Total Gain: $7,985 ROI: 49.34%.Year 3 Analysis Cash Flow: -$375 Home Appreciation: $6,242 Principal Paydown: $2,806 Total Gain: $8,674 ROI: 53.59%.Year 4 Analysis Cash Flow: $9 Home Appreciation: $6,367 Principal Paydown: $3,009 Total Gain: $9,386 ROI: 57.99%.Based on these numbers, you’d have negative cash flow for the first three years and only break even in Year 4, assuming a 2.5% annual rent increase.Adjusted Scenario see second picture: Landlord Covers Gas and WaterIn the second scenario, I assumed the landlord would pay for gas and water at $300/month while maintaining the same 2% home appreciation rate.
Vincent Plant
Hard Money Costs Too Much?
13 January 2025 | 15 replies
Will likely take longer to close than a traditional hard money (they have to order an appraisal, satisfy lender conditions etc..).
Kerry Hermann
New to the Northern Alabama market
20 January 2025 | 12 replies
I haven't actually closed a deal that far west or else I would be able to give more insight.
Tuan Tran
Section 8 Fort Wayne, IN
15 January 2025 | 7 replies
Rents have been pretty close to what the housing authorities advertise, sometimes even a bit higher.Fort Wayne’s a solid spot with low taxes and good cash flow—definitely worth looking into.