 Rehab Loan (by Tim [NY]) Sep 26, 2020 8:14 PM
 Rehab Loan (by Ken [NY]) Sep 26, 2020 9:10 PM
Rehab Loan (by Deanna [TX]) Sep 26, 2020 9:13 PM
Rehab Loan (by Hoosier [IN]) Sep 27, 2020 10:09 AM
Rehab Loan (by Dodge [PA]) Sep 27, 2020 10:30 AM
Rehab Loan (by Nicole [PA]) Sep 27, 2020 11:24 AM
Rehab Loan (by FloridaNative [FL]) Sep 27, 2020 1:11 PM
Rehab Loan (by FloridaNative [FL]) Sep 27, 2020 1:12 PM
Rehab Loan (by Robert J [CA]) Sep 27, 2020 3:04 PM
Rehab Loan (by Tim [NY]) Sep 28, 2020 10:46 PM
Rehab Loan (by Tim [NY]) Sep 28, 2020 10:57 PM
Rehab Loan (by Ray-N-Pa [PA]) Sep 29, 2020 11:15 AM
Rehab Loan (by Ken [NY]) Sep 29, 2020 1:52 PM
Rehab Loan (by Tim [NY]) Sep 29, 2020 9:45 PM
Rehab Loan (by plenty [MO]) Sep 29, 2020 10:58 PM
Rehab Loan (by Tim [NY]) Oct 1, 2020 9:10 PM
Rehab Loan (by Tim [NY]) Oct 1, 2020 9:12 PM
Rehab Loan (by Tim [NY]) Posted on: Sep 26, 2020 8:14 PM
Message:
Need help Asap, I bought my first investment property for way below comps $27K and the comps were about $100k I need help with getting a loan to fix the property, I paid all cash and used all my savings bad idea, now I'm stuck with no money to fix and I'm trying to see if maybe I can get a Hard Money loan. Is there anyone that can help me or guide me on which way I should go? Thank you in advance and I look forward to hearing from you soon. --148.75.xxx.xxx |
Rehab Loan (by Ken [NY]) Posted on: Sep 26, 2020 9:10 PM
Message:
Where in NY are you located? Have you considered selling it as is and just making a few bucks quick and easy? --104.229.xxx.xxx |
Rehab Loan (by Deanna [TX]) Posted on: Sep 26, 2020 9:13 PM
Message:
Once, we had a similar problem--- lots of cheap houses, and enough ready cash on hand to buy them, but not enough to fix them up. So we got a loan against a paid-off house that was owned free-and-clear by the LLC.
However, the bank had no interest in dealing with the LLC itself, no matter how long it existed, or what its documented income was. They also didn't care about the paid-off house as collateral, which was worth more than the value of the loan. They wanted me to personally guarantee the loan, since I was the person behind the single-member LLC. And because I didn't have a W2 job at the time, they wanted DH to personally guarantee me--- even though the LLC had been created to specifically distance him from the financials.
The first bank we had approached had guaranteed us a rate of x%. But when we sat down for the paperwork, the rate was actually y%... because for a non-primary-residence property, it was more expensive. We went to the bank down the road, which offered the same rate of y%, but were at least up-front about it. But in both cases, the most they could offer was a 5 year loan. We initially accepted it, with the hopes of extending it... but when we checked into it two years later, it wasn't an option.
The loans were intrusive. Every year, we had to write down all our financials--- our personal savings, the biz income, a full list of our assets, and so on. It was understandable, but intrusive.
They made us insure the house that served as collateral... they picked the insurance carrier and the coverage. It was not the cheap kind.
We ultimately paid off the loan as quickly as possible to be out from under it, and resolved not to do it again. Yeah, we move pretty slowly, moving at the pace of cash-coming-in... and we lose hypothetical money for each month the project houses are off the market.
But that was our experience with the banks.
A lot depends on what you need done, and how much of it needs doing. I've found that in my market, I'm usually all-in on a house for $x. The purchase price might be a, b, or c, and the renovation costs might be d, e, or f, but a+d, b+e, and c+f are all generally in that $x ballpark range.
Are you running into the same situation--- your purchase price was $27k, but your renovation costs are going to be $73k, to get it in that $100k range?
Depending on what needs doing, there are various approaches you can take. For us, we saved money on the first 5-10 units by putting in a ton of sweat equity. We were the ones swinging a hammer, hanging drywall, installing light fixtures, and painting. We watched a lot of YouTube videos. After we got to #10, that was when the income from the working properties started to allow us the luxury of hiring more of the unskilled stuff out. So if it's "easy" stuff, like rip-out-carpet-and-install-new-flooring, you can do it for the cost of materials. But if it's skilled stuff, like rewire-a-house or replumb-everything, then definitely find somewhere else to balance out the savings--- don't cut those corners. --137.118.xx.xxx |
Rehab Loan (by Hoosier [IN]) Posted on: Sep 27, 2020 10:09 AM
Message:
Although we don't recommend loans of any kind, what about a HELOC on your primary residence? --99.92.xxx.xxx |
Rehab Loan (by Dodge [PA]) Posted on: Sep 27, 2020 10:30 AM
Message:
If your credit score is good and you don't need lots of cash, credit card zero percent balance transfers may work for you. Just make sure you'll have the cash to pay off the credit card when the into rate expires. --174.198.xxx.xx |
Rehab Loan (by Nicole [PA]) Posted on: Sep 27, 2020 11:24 AM
Message:
FHA 203 (k) loan Not sure of the details but they are fixer up government backed loans. --72.70.xxx.x |
Rehab Loan (by FloridaNative [FL]) Posted on: Sep 27, 2020 1:11 PM
Message:
There are restrictions on the FHA 203k rehab loan. It must be a property to be owner occupied. Check with a good mortgage lender (not one of the big box banks) to get underwriting details.
There are also conventional rehab loans, a variety with different LTV's and some allow investment properties so this is more viable for the OP if s/he isn't an owner/occupant like FHA requires.
Hard money is the easiest loan, but the interest rate is high and terms may be unacceptable. There are a whole variety of hard money lenders.
Private money loans are also available - similar to hard money but usually slightly better rates and terms. Depends on the investor.
Be very careful when you are searching for rehab loans. Go through a reputable mortgage broker or mortgage banker. THE MINUTE YOU ASK ONLINE YOU WILL GET HIT WITH A TON OF SCAMMERS --68.104.xxx.xxx |
Rehab Loan (by FloridaNative [FL]) Posted on: Sep 27, 2020 1:12 PM
Message:
There are restrictions on the FHA 203k rehab loan. It must be a property to be owner occupied. Check with a good mortgage lender (not one of the big box banks) to get underwriting details.
There are also conventional rehab loans, a variety with different LTV's and some allow investment properties so this is more viable for the OP if s/he isn't an owner/occupant like FHA requires.
Hard money is the easiest loan, but the interest rate is high and terms may be unacceptable. There are a whole variety of hard money lenders.
Private money loans are also available - similar to hard money but usually slightly better rates and terms. Depends on the investor.
Be very careful when you are searching for rehab loans. Go through a reputable mortgage broker or mortgage banker. THE MINUTE YOU ASK ONLINE YOU WILL GET HIT WITH A TON OF SCAMMERS --68.104.xxx.xxx |
Rehab Loan (by Robert J [CA]) Posted on: Sep 27, 2020 3:04 PM
Message:
When I had to upgrade multiple apartment properties due to changes in the way my City Inspects Units, I had to use credit cards and get a Line of Credit From my Credit Union to complete repairs.
But, once those repairs were completed and I got a Brokers BPO (appraisal), it was then easy to obtain a Bank Loan.. --47.155.xx.xxx |
Rehab Loan (by Tim [NY]) Posted on: Sep 28, 2020 10:46 PM
Message:
So I bought the property in upstate NY for $27K, so after the repairs are done of about $25K if your handy or $50K if your hiring a contractor depending on the contractors. The after repairs comps comes in at around $175 to $200K. I know I said that the comps come in at $100K that's not the case here. So I would consider selling and making some money and leaving some on the table for the next investor. With the market being as it is with low inventory I would consider $50K and there's plenty of money to be made on this deal because it's a multi-family with the potential to make $2,500 to $4,000 per month when fully occupied or more. I want to thank everyone for there help and feedback, I am going to look into private lenders and hard money lenders, 203K rehab loans if I don't get an offer. I will keep you posted, thanks again. I will be checking for feedback. --148.75.xxx.xxx |
Rehab Loan (by Tim [NY]) Posted on: Sep 28, 2020 10:57 PM
Message:
I am also looking to sell the property as is for $50k it's a multi-family located in Essex County, NY looking to close fast. if anyone is interested let me know, thanks again for your feedback and stay safe. --148.75.xxx.xxx |
Rehab Loan (by Ray-N-Pa [PA]) Posted on: Sep 29, 2020 11:15 AM
Message:
Within the business world- you can have speed, price or quality. Pick any two. Don't try getting it all or being it all....it doesn't work well.
So you want a fast closing, and you want to double your money............what do you suppose your buyer is also going to want? If you are picking places up for 27 and have repair cost of 25 that yield an ARV of 175-200K, someone is going to call you out or hire you to teach them.
This is a tough market place for finding places so wholesaling the place might make the most sense
Good luck --24.101.xxx.xx |
Rehab Loan (by Ken [NY]) Posted on: Sep 29, 2020 1:52 PM
Message:
List it with an agent and get it on the mls,i buy them like that and mow the lawn and clean them out and have them on the mls in a week and right now something like will sell fast if it is priced right --104.229.xxx.xxx |
Rehab Loan (by Tim [NY]) Posted on: Sep 29, 2020 9:45 PM
Message:
Thanks for the great advice, I realized I was trying to hit a home run instead of getting on base. I am going to list it with a realtor and wholesale it. I'll make a couple of thousand and that's fair enough. I am going to price it right, for a fast sell not for double the price. Lessen learned, Once again thanks for the great advice, I really appreciated. Stay safe during this covid crisis. --148.75.xxx.xxx |
Rehab Loan (by plenty [MO]) Posted on: Sep 29, 2020 10:58 PM
Message:
Let the realtor tell you the price. Get as much as you can. Don't leave money on the table. Use credit cards, zero percent, for clean out and fix up. --99.203.xx.xxx |
Rehab Loan (by Tim [NY]) Posted on: Oct 1, 2020 9:10 PM
Message:
Thanks for the feedback, I will take your great advice. --148.75.xxx.xxx |
Rehab Loan (by Tim [NY]) Posted on: Oct 1, 2020 9:12 PM
Message:
Thanks for the feedback, I will take your great advices. --148.75.xxx.xxx |
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