Financing, Hard Money Lenders, Credit, Qualifying

[Nick Tang]

Hard Money Lenders, Private Lenders, Credit, Qualifying, etc.

[Edward Depp]

And the saddest part is when you received a foreclosure notice.

[Walter W. Stumpf Jr.]

Rob-

I know there are plenty of 'urban' deals out there, I get inundated with emails for houses in Newark, Paterson, Irvington and the like for like $25k to buy. They need $100k in rehabbing-or basically rebuilding as they are a mess, and can be sold for $199k. I am in a different market up here in the country. My rehab costs are very accurate-my crew is very good and we do not cut corners. I believe that the finished product is something I would have my family in, and I can be proud of.

If I need to make mortgage payments from day one, versus a lump sum at 3 and 6 months/closing, than I would need to make an adjustment to my calculations to account for that. We do not overpay to purchase a house, a good reason we are very selective in houses we chose-maybe 1 out of 50.

Walter

Rob Beeman said:

Walter, the way that a lending source (private or otherwise) would look at the transaction would be something like this:
ARV: $279k
Max. Loan: $181K (65% of the ARV)
Purchase: $142k
Rehab: $50k
Other Fees: Closing costs, carrying costs, lender fees & points, perhaps 6 mortgage payments escrowed, costs for renovation commencement, etc

In today's market, somethings are for certain: Lending sources are more conservative on their ARV numbers, want to see more "skin in the game" (money) from the borrower and always assume the worst case (they have to own it). With that said, one thing that we focus on, and train others to do also, is "Focus on the purcahse price". That is the one area that we have total control over. With a zillion deals available in the market (we know we get flooded with emails daily), it does not make sense to overpay, and then have to under rehab to try to catch up to making a profit.

CCG Academy on YouTube: https://www.youtube.com/watch?v=BTlJ5Vq8FFI

Rob Beeman
Director of Strategic Operations
Commercial Capital Group
Lenders Developers Consultants
Helping Others Buy, Build & Manage Real Estate
215-253-5880 x60 Office
215-913-1580 Direct
Email: [e-mail]
Efax: 215-689-1954 (Attention Rob Beeman)
www.ccg-lending.com
www.ccg-academy.com Adding Value to the Lives of Others


Walter W. Stumpf Jr. said:

I have an opportunity to purchase a pre-foreclosure house in Sussex County, in one of the best lake communities. My contract is for $142K, with $50K for rehab, and an ARV [by my realtor] of $279K. We will problably list it under market value, and under anything else in the area at $269K.
It will have 3br/2b, lr, dr, k, deck, all new kitchen and appliances, both bathrooms new, new hardwood floor, new siding, new landscaping, everything needed for a quick sale.
But I am looking for the funding to do this-I have my line of credit tied up in 2 other houses-and want to have my crew continue working for me. You get 100+% collateral, 10% annual interest, AND 25% of the net profit! You should get a 20+% return on your investment!
Email or call me for more information.
Walter W. Stumpf Jr.
[e-mail]
1-973-670-2135-cell

[Walter W. Stumpf Jr.]

Michael:

Sorry I didn't see your reply before. The crew that works for me is just plain fantastic! I have gone through quite a few and these guys are half the price, none of the hassles, twice as smart, and definitely the best. I have used old guys, new guys, cheap guys, expensive guys, none compare. I do get the comment that my costs seem low, but they are and they are on target. I have had guys charge me $5-7 a square foot for tiling, versus $2-3 from them, and they are not as dedicated.

A/C-heat and plumbing is included in the rehab costs. The carrying costs are included in the interest paid to the investor, selling costs come out of the gross profit.

Walter

Michael Curran said:

I have done a lot of rehabs, your repair estimates seem low. How is the electric/plumbing/AC? Did you include carrying/closing costs? If not what do you think a ball park would be for these?

Walter W. Stumpf Jr. said:

I have an opportunity to purchase a pre-foreclosure house in Sussex County, in one of the best lake communities. My contract is for $142K, with $50K for rehab, and an ARV [by my realtor] of $279K. We will problably list it under market value, and under anything else in the area at $269K.
It will have 3br/2b, lr, dr, k, deck, all new kitchen and appliances, both bathrooms new, new hardwood floor, new siding, new landscaping, everything needed for a quick sale.
But I am looking for the funding to do this-I have my line of credit tied up in 2 other houses-and want to have my crew continue working for me. You get 100+% collateral, 10% annual interest, AND 25% of the net profit! You should get a 20+% return on your investment!
Email or call me for more information.
Walter W. Stumpf Jr.
[e-mail]
1-973-670-2135-cell

[Steve Moran]

This sounds like an opportunity for a friend or fellow investor to utilize their Self-Directed IRA and provide the financing in a tax free or tax deferred format. Since it would be Self-Directed, you and they would create all of the terms for that loan or Equity Investment. Let me know if you are interested in hearing more about this, as it's a great opportunity for people to diversify their retirement portfolio and I can email you information about how it works that you may then forward on to a potential investor.

[Michael Curran]

I have done a lot of rehabs, your repair estimates seem low. How is the electric/plumbing/AC? Did you include carrying/closing costs? If not what do you think a ball park would be for these?

Walter W. Stumpf Jr. said:

I have an opportunity to purchase a pre-foreclosure house in Sussex County, in one of the best lake communities. My contract is for $142K, with $50K for rehab, and an ARV [by my realtor] of $279K. We will problably list it under market value, and under anything else in the area at $269K.
It will have 3br/2b, lr, dr, k, deck, all new kitchen and appliances, both bathrooms new, new hardwood floor, new siding, new landscaping, everything needed for a quick sale.
But I am looking for the funding to do this-I have my line of credit tied up in 2 other houses-and want to have my crew continue working for me. You get 100+% collateral, 10% annual interest, AND 25% of the net profit! You should get a 20+% return on your investment!
Email or call me for more information.
Walter W. Stumpf Jr.
[e-mail]
1-973-670-2135-cell

[Walter W. Stumpf Jr.]

Yes I can.
There have been a few sales in this community, plus like only 2 other houses for sale currently. There is little turnover unfortunately for a large quantity of comps, but then that reflects on how much people like the area-they stay basically for life.
Call me if you would like to talk about it.
Walter

[Robert Mann]

Can you get comps to back up the value?

Walter W. Stumpf Jr. said:

I have an opportunity to purchase a pre-foreclosure house in Sussex County, in one of the best lake communities. My contract is for $142K, with $50K for rehab, and an ARV [by my realtor] of $279K. We will problably list it under market value, and under anything else in the area at $269K.
It will have 3br/2b, lr, dr, k, deck, all new kitchen and appliances, both bathrooms new, new hardwood floor, new siding, new landscaping, everything needed for a quick sale.
But I am looking for the funding to do this-I have my line of credit tied up in 2 other houses-and want to have my crew continue working for me. You get 100+% collateral, 10% annual interest, AND 25% of the net profit! You should get a 20+% return on your investment!
Email or call me for more information.
Walter W. Stumpf Jr.
[e-mail]
1-973-670-2135-cell

[Walter W. Stumpf Jr.]

I have an opportunity to purchase a pre-foreclosure house in Sussex County, in one of the best lake communities. My contract is for $142K, with $50K for rehab, and an ARV [by my realtor] of $279K. We will problably list it under market value, and under anything else in the area at $269K.
It will have 3br/2b, lr, dr, k, deck, all new kitchen and appliances, both bathrooms new, new hardwood floor, new siding, new landscaping, everything needed for a quick sale.
But I am looking for the funding to do this-I have my line of credit tied up in 2 other houses-and want to have my crew continue working for me. You get 100+% collateral, 10% annual interest, AND 25% of the net profit! You should get a 20+% return on your investment!
Email or call me for more information.
Walter W. Stumpf Jr.
[e-mail]
1-973-670-2135-cell