There’s an REO property that I found that’s in a decent neighborhood and looks good from the outside. The details are:
Location - Pennsylvania
Price - $40,000
Market Value - $115,000
Remarks in MLS says it needs some work. I haven’t gone out to see it yet to verify how much.
I’d love to fix it up (depending on repairs) and either sell it or do a rent to own.
Here’s my problem. I don’t have the best credit so me financing it with a conventional loan will probably be slim. Do hard money lenders work with people with poor credit with this much possible equity? Will they also finance the money to fix it up?
HML’s look more at the project and less at credit. most HML’s lend 65-70% arv. However HML’s come at a higher price, but depending on the amout of work this needs this could be a great HML option.
I should mention that obviously HML is last resort and also only use them for short term. So if you plan to flip…by all means
Depending on how low your scores are and if the repairs are needed to get the property occupied. You could probably go conventional. There are programs now for as low as 500+ scores.