Can it be done

Financing, Hard Money Lenders, Private Money
1

First off, I just want to say what’s up gang. I’ve been checking out this website for a couple of weeks and I love it.

I have invested in commercial properties, but I am now looking to get into residential. I think I found my first deal, but I don’t really want to put any of my own money into it. I’m thinking hard money, but what could my terms be?

Here’s the scenario:

Single family home
Purchase price 35-40k
Only needs minor repairs (paint, carpet, etc.
I estimate ARV to be 75k (conservative)

I want to use this property as a rental so I need good terms for the long term.(no prepay, low costs, rate preferably 12 or less)

About me:
Mid Score:605
Income:32k salary plus commish(50k total)
very little debt.

Would this be possible or am I just dreaming and would I need to put 20% down?

Thanks in Advance,

Ray

2

I would flip it, pocket the cash and THEN go look for a rental. with cash in hand you should be able to find favorable long term financing for the next deal.

3

Thanks for your idea, however, this home is in Detroit. Flipping is not really an option because it may take 12 months to sell.

4

Do you have cash reserves?

Although you can feasibly secure 100% financing for cost of purchase + repairs + closing costs (using a 65 or 70 ARV program), you’ll still need reserves to fund the rehab before being reimbursed by the escrow account.

Regards,

Scott Miller