Hello,
Just spoke to my broker regarding a deal where I would take out a hard money loan. He is advising me that I will have a hard time refinancing out of the HM loan 3 months later because the assignment fee I am paying for the house is too high.
House was bought at foreclosure auction for $14,650 and investor wants $12,350 assignment fee. I’m purchasing for $27K and ARV is coming in at $50K-$55K. Broker is telling me that banks will look at the money the wholesaler is making — $12K — and they won’t refinance the house even if I keep it because they would view the chain of title and consider it flipping.
Anyone have any ideas of how I can get around this? The property is a good deal and I can get money to finance, but I can’t run the risk of getting stuck on a HM loan for up to a year.