If you're selling a flip you cannot rely on just the timing of the market. I'm seeing more investors sweat as their properties stay on market 30, 45, 60 days without a serious buyer. And, unfortunately, selling the home was their only goal and consideration. But how many months can you list a property until you run out of funds? Every investor should know that number and have a backup plan in case you hit it. A.K.A Refinancing There are too many dreamers out there who think optimism means their plan will work no matter what. But that's delusion. And YOU are not delusional. So back to the numbers you should know. When underwriting a flip we have the typical numbers in mind: purchase price, rehab costs, ARV, holding costs. What you are going to do differently is run numbers for the refinance, the plan B. That looks like: the highest loan to value you can get, the interest rate, the prepayment penalty, the fees & closing costs. Run those numbers BEFORE you list. Not after day 45 when you're starting to panic. Because here's the truth: A refinance you plan for is a strategy. A refinance you scramble for is a rescue mission. ​And rescue missions cost you more — in rate, in fees, in sleep. ​ So before you put the sign in the yard, know your numbers on both sides: → What you need to walk away with as a sale → What you need to walk away with as a refi If those two numbers are close, you're not gambling anymore. That's the difference between an investor and a dreamer. Between those that hope the market cooperates and those that build a plan that works whether it does or not. ​ So — have you run your refi numbers on your current flip? Or are you still hoping it sells before you have to? Drop a ‘NUMBER’ in the comments if you want to go over HOW to calculate a refinance. I may just do a webinar on it. 😉

It didn’t come in low, it was worse. ​ When my borrowers are scheduling their appraisal inspections I have one thing to tell them- act like you’ve just been arrested. ​ Act like you can’t say anything without an attorney present. ​ Appraisers have a habit of taking a small detail and derailing an entire loan. ​ In this instance, a borrower mentioned he would be at his rental for a few days to fix some issues at the home. ​ The appraiser took that to mean he lived at the house, otherwise known as an owner occupied property. ​ As soon as the lender got word of this they immediately tried cancelling the file. ​ Luckily, they informed us before taking action. ​ Immediately drafted a Letter of Explanation detailing the repairs the owner was working on and we were in the clear. ​ When an appraiser calls you to schedule the inspection don’t: - Say you’re going to the home to fix issues - Give them a description of your exit strategy - Give them any details other than what day/time they can go in and if there is a long term tenant there That’s all they need. Give them more and they can, and will, use it against you.

“Here’s the property address, what rates am I looking at?” ​ Big accusation, but real. ​ In my first year brokering, after closing 40+ loans, this question came up so often I wondered if I was bad at my job for *not* answering it on the spot. ​ Here’s what’s actually happening behind the scenes. ​ Unless you’re working with a true private money lender, almost every institution has a **range** of rates and terms, not a single magic number. ​ Roughly: - Hard money lenders: ~9–12% - DSCR lenders: ~6–8% ​ Where you land in that range depends on things like: - Your credit score - Purchase price / loan amount - LTV - Experience as a borrower - Property type and condition - DSCR / rent vs payment ​ So when a broker gives you a rate quote based only on an address, that’s a red flag. ⛳ ​ They don’t know your credit. They don’t know your structure. They haven’t underwritten the deal. ​ They’re not giving you a quote. They’re dangling a carrot. ​ If you want to save yourself a lot of headache, try this instead: ​ Instead of asking, ​ “Here’s the address, what’s my rate?” ​ Ask, ​ “What do you need to know to give me a realistic rate range?” ​ A good broker will ask questions first: ​ - Credit band - Purchase / payoff amount - Rehab or no rehab - Rent or projected rent - Experience ​ The more real info you give *upfront*, the closer your initial quote will be to what you actually see at the closing table.

Loan brokering allows me to see dozens of deals every week and understand which deals actually get to the closing table. ​ Coliving is one of the most complex strategies that often fail to meet lending requirements. ​ So here are the 6 most important things I’ve learned if I invest in coliving: ​ 1. An enormous amount of lenders do not lend on rent by the room rentals. ​ You have to find the small amount of lenders that do and HAVE to check with them before executing. ​ 2. Add extra bedrooms and bathrooms AFFTER refinancing. ​ The value is based on the appraisal and if there are no comps, there may not be an appraisal or a loan. ​ 3. Adding more bedrooms does not inherently increase the value of the property. ​ In many cases, the value is lower than homes with fewer bedrooms. Usually because those houses with lower bedrooms sell more quickly and often. ​ 4. Have a US Citizen or Permanent Resident Alien as the guarantor of the loan if the rooms are already rented out. ​ More loan options available. ​ 5. Once rooms are rented out it’s best to get a bridge loan for 12 months and then refinance into a DSCR— then you can use your coliving rental income for the DSCR. ​ Lenders won’t take 1 month’s rent on a coliving like they do with long term rentals. Like a short term rental, they’ll want to see the average of 12 months rent. ​ 6. If you’re going to build a coliving property either make a maximum 5 bedroom single family or a 2-4 plex with that same max bedroom count. ​ Coliving is a more strategic strategy and, therefore, requires some forethought. ​ Hope this helps!

❓ Can you do 100% funding? ▶️ Yes— in specific states. And KNOW the interest rate will be above 11%. I don’t want to set you up for failure ​ ❓ Can I get a loan to fix and flip a manufactured home? ▶️ Absolutely! ​ ❓ Can I get a loan for a commercial property I have to rehab? ▶️ Possibly. I don’t have the lenders for that though. ​ ❓ Can I get the rehab funding at closing? ▶️ No. Hard Money Loans will have a draw (reimbursement) process— you start the rehab with your own funds and then request the draw from the lender. ​ ❓ I have a loan coming due but I need to do more rehab. Can I get a HML to replace this lender and get more renovation funding? ▶️ Yep! Tell us the situation, let us run the numbers, and if the numbers are flexible then it’s a possibility. ​ What questions do you still have?