When a property is listed on MLS or FSBO and the seller is extremely motivated to sell, due to job loss or relocation and owners asking price is $230,000 house needs updating new windows windows furnace for example and a little cleaning, and i place in an offer foe $189,900 he accepts offer house is assessed at $199,000 i call up Hardmoney tell them that i just placed $1,000 for earnest money and i assigned the property for $189,900 but with $20,000 work into the house this house can turn around and sell for $240,000 range, Hardmoney says ok will loan you $20,000 but you have 2 week time frame to make it happen. NOW WHAT
If that is the hardmoney rules you can always say no and go to your local bank.
I’m lost, where did the $189k to buy the property come from?
If the property has a true after repaired value of $240k, a hard money lender will lender you no more than 168k, you have to pay the difference, closing cost and the $20k for rehab,
You will need to bring about $46k to closing to go with the hard money
its just not a good deal
Andy is right. Any Hard Money Lender is going to insure that you have some “skin” in the game…