Looking for advice on financing a rehab… I wnat to keep my payments as low as possible to maintain liquidy for any deals that may come up. My estimated turn around on the house is 6-10 months. Any creative financing ideas out there that could fit this situation and keep my payments (both downpayment and monthly) low??? Thanks for any input!
Ryan
Give us a little more info. on the deal you have going.
Fair market value on the house (fully rented, its a 2 fam) is 189, but it needs approx 35K in necessary repairs and updates. If I purchase the house for 110k is it possible to mortgage for 130k seeing that the house is assessed at 145? I think that might be too good to be true but i was just curious.
Ryan
Hi ryan, I haven’t been doing this very long but one thing I have noticed about hard money lenders is that although a property has a certain assessed value they will go above that assesment. I had a property assesed at 63k it needed at least 40k in fix up I got a lender to appraise it at 75k. I was shocked but the appraiser told me that h.m.l. are usually very forgiving for thier costomers. I don’t know if thats the way you would want to go. Ideally you should try to bring in a partner or borrow from a friend or family member since these lenders are usually not cheap. I assume you have allready explored the seller financing route? I hope this has helped, just remember just because a property has an assesed value that doesn’t mean you can’t get a much better appraisal from a lender ie: Ameriquest, Diteck ect… Another thing to remember is taxes, if your property is assessed at 145k and you get it appraised at 175k and get the loan your taxes will allso rise. You might want to get mare input on the subject from someone more experienced than I. GOOD LUCK, LET US KNOW HOW IT WORKS OUT.