Kevin,
Only one of my lenders requires appraisals. I have to order one from his appraiser everytime I get a home financed through him.
They will lend repair costs in most cases. I have learned to estimate them much better then when I started just by having to write checks for previous rehabs.
For instance I know now that my windows are going to cost $172 installed everytime, and carpeting will run about $1000 for an average sized home and kitchens run me about $1500-$2000 fully installed. I get much better with my numbers as I go.
Steve,
So, when your hard money lender fund the deal, do they fund the amount that you sell to your investors?
And for the ones that you keep(didn’t flip) you keep the same hard money on the property? If you do, do they usually have a balloon?
Thanks
Kevin,
Yes my hard money lenders lend the purchase price to my buyers in most cases. If they won’t go the whole amount I will hold a second for the difference. They are turning them over quickly and I am getting paid on them in an average of 60 days so far.
Yes all my hard money lenders have balloons. They vary by lender, some are one year others go as much as 5 years.
Do you get an appraisal done for each property when your hard money lender finances the deals?
What about repair cost? Do you have general formula that you apply to figure it out?
Thanks.
Steve,
Thanks.
Then, for the ones you keep, do you get a long term refi after the fixup? And how do your investors respond on the financing with 1 year balloon?