Closing my First Deal Since Joining the Academy!

Awesome job! Now that's the way to make a plan and carry it out!
It'll be great to hear all the details. That's awesome that you used OPM (HML) and didn't let a lack of funds stop you from reaching your goal!
Keep up the good work and we shall all celebrate with you on closing day!!

Rina

Thanks Rina, I appreciate you taking the time to comment.

The Goal is to get a chance to meet yourself, Dean and the entire team in 2010!!!

You were an inspiration!

We took a leap of faith regarding the academy, we looked at each other and said
"what are we doing??? are you sure you want to do this?? we both shook our head yes...time to jump!"

We will see you sometime in 2010!!!!!

Congrats on making your 1st of many deals happen. I bet you are just feeling so great right about now. If you work hard I'm sure you will meet all of your goals. Hope to meet you in 2010 and see you with a bunch of deals.

Jeremy

At least 5!!!! Then we will get our investment back plus the benefits of all deals and additional knowledge!

My favorite saying...luck is when opportunity crosses paths with preparation! We are finally prepared and are going to capitalize on our opportunities!

Thanks for the comment.

Nice work moving forward with the knowledge you are gaining from the academy! Hopefully now that you have your first deal many more will come your way. I am curious about your HML. Did they require any money on your part to be held in an escrow account or what can you share about the criteria. Thanks!

-Moses

Hi and congrats on your first accepted deal my friends. I too just joined the academy a few weeks ago and I am on the way as well. Please keep us posted, I like to read these types of messages because it motivates me even more when I feel overwhelmed and discouraged.

Your friend,
Reggie Peoples

Great to hear your good news. It is a beautiful feeling closing that first one. I know you will get questions from other members on your HML. Perhaps you would like to expand on the details on how you got your money through them and what the fine points are. this would be a help to those that are trying to put deals together but hitting road blocks. Hope to meet the both of you in 2010...Jan

Congratulations on your first deal- can u please share the information on your hard money lender ? Thank a lot. More deals!!!!

Thanks for all the feedback....still a fair amount to do before its a done deal, but here is the scoop on the HML;

*Brookview Financial www.brookviewfinancial.com
*What they are willing to finance depends on your liquid assets (Mainly Cash)
*They fund 100% up to 70% of the ARV and request that 15% of the deal is placed in escrow for security and rehab over runs etc.
*Just received the following list now that we have a signed contract
-3 most recent paystubs
-Rehab summary and costs
-Formal inspection with Photos of interior/exterior of property
-last 2 tax returns

You can also explore the website to get the balance of the information or details regarding criteria.

At this point, my concern is that i have a check for $8K in escrow with 7 days to inspect as an escape clause. I need to ensure that once this point is passed, that they will deposit the required funds or i lose $8K....little scary and if anyone has thoughts on this please let me know. Hoping I'll have the funds in the account prior to this expiring so that i know i can close.

Hope this helps!

Congratulations on your first deal and thank you for the lender info. We are also in the academy but have yet to close on a deal. Good luck and again congrats.

Thank you very much for sharing this information.

Just a few questions please:

1. Liquid assets- Do they have a certain amount required? Or is there a percentage of amount they will fund base on liquid assets? i.e. $50 in cash, they will fund $25?
2. 15% of the deal meaning 15% of the loan they give you? If you ran out of money for rehab, you can touch the funds? or untouchable at all?
3. You meant you needed to submit paystubs? and tax returns?
4. Will they desposit the funds in your account or atty's account?

Brookview seems to have a good reputation here in New York, keep us updated though as to what happens next.

If you pass this stage, the only way to go is forward. Hope all goes well.

You have definitely put plans into action and received results, congratulations. We cannot wait to hears how everything plays out. Thanks for sharing. God Bless.

Sandra

Well i figure i would add to the older post describing my fix & flip situation. As i mentioned earlier, the HML is willing to finance 100% of the deal up to 70% ARV. So as things progressed with our first deal, and there is also costs associated with borrowing the money, we were creaping past this value and i needed cash to make up for this offset. So since the deal was beginning to cost me more out of pocket to make happen, i decided to pull out and utilized the inspection clause (I was a little concerned since i had 10% or 8K in Escrow).

Now although this was very discouraging, and took a lot of time/effort, we learned a good deal about time frames & expectations from the HML.

So we have a new accepted offer, it is a 2 bdrm 1 bath home on 1/2 Acre lot that is a foreclosure. They accepted 59K offer price and the town records have it appraised at 135K approx. Soooo we have budgeted 10k to improve and will give someone instant equity by selling at 105-110K which should net us around 25K profit!!! I do not want to elude that we are done....we have the HML company reviewing the deal in underwriting and we will know this week if it fits their standards. We are scheduled to close March 4th. We really like this strategy but need to get one under our belts!!! Really appreciate the support from everyone. Just like anything, when you are doing something for the first time, you tend to make the most mistakes. We are learning and have made the decision that nothing will derail us from reaching our goals!!!!

Well a little more to the story....

HML decided at the last minute to back out of the deal due to it's proximity to commercial property, however; i know that this is a profitable opportunity.

Soooo, we did all that we could to find another alternate funding source and finally sat with a commercial lender at a well known bank and explained the deal. (did not mention the HML pulling out)

The commercial lender said it was a stretch, but called me the other day and said they would fund the deal AND the rehab costs! Loan for 70K and collateral is the home and also they will place 10K of savings in escrow until repairs are done and appraisal comes in.

CLOSING END OF WEEK!

I've decided to keep the rehab property and rent it out and refinance with another local bank so here is the deal;

Rented the Home already Monthly for $1000/month and they are responsible for cutting the grass and having plowing this winter.

Refinancing with bank for 92K as it is 80% of the new appraisal price of $116K

So bought with no money down for 70K which was buy price and fix price
put in another 5K of credit into the fixup due to over runs.

Refinancing for 92K pay off all fixup price and approximately 15K in my pocket.

Now I'm going to rent the house at a positive cash flow of $200/month and then tenants will pay it off over the next several years, nice retirement plan!

If you have questions, feel free to ask!

All the best!

After the refinance....It will be time to hunt for the next one!

Just wanted to stop in and say good job, Keep up the great work and keep us posted.

Randy