I am in desperate need for a lender or rehab financing, I am willing to put up a percentage of the property as collateral if there is anyone that can help me with this deal in FL. I have the property under contract and I am running out of time.
The property has 3,000 sqf and needs some rehabing I allready have done some of the work my self, but needs additional work and I have run out of money and the lenders want the unit to be totally finish before going any further.
How much rehab are you talking about and what is the sales price? Most lenders will not touch it if there are notices of commencement and work in progress but you can always stop work and terminate then refil them so the bank is protected in lin priority. Let me know and maybe I can send you somewhere.
Thanks for your reply, the house probably needs about 15,000 in to finish the rehab. This includes new central A/C and some drywalling, painting and carpeting or linolieum to get to where the bank will be satisfy. Some of this work has been advance and an appraisal has been done 2 days ago and we are waiting for the results.
The property price is 305,000.
Anything you can do to help will be greatly appreciated.
If you have equity in the house try and get an equity lin on the house. They give you this even if your credit is not so good. This is probably your best option. There is not much private lending going on for these types of improvements unless you have some equity. What is your debt to equity ration on the property?
Thanks again, the property as I mentioned is under contract and I if there is any equity I am not aware of it, sorry for my ignorance.
Please reply with your thoughs
It should not matter that it is under contract…it would be a short term loan for the lender. Your equity is the difference between the sales price and your payoff amount of your mortgage. If you have equity, a lender may give you a home improvemnt loan for the refurb. In lieu of taking a loan for the refurb, you can negotiate a credit with the buyer to take the place as is and forget about the improvements. It is an alternative you may wish to look into. It can be done via contract addendum.
I am sorry if I miss lead you, I am the one buying the property and also holding the contract. The seller is holding 20% and I am searching for 80% of the property value.
Sorry for the confusion, I hope this clear the confusion or maybe I still don’t understand.
Please explain, again sorry for my ignorance.
Sorry…I misunderstood you and I am not sure If I do now.
I thought you already owned it and were selling. Most Lenders will not touch it until you officially own it. Lenders (conventional ones) will not let you use a property you do not own as collateral and they usually do not buy into pieces of a contract. You need to find creative finaning or you stand to lose a great deal. I hope you have a good contract that protects you for the work you are doing.
I am sorry for the misunderstanding, Do you believe there is something that could be done to hold on to the property and acquire the necesary lending for this deal?
Without seeing the contract there is no way to tell. You have to be sure you do not have a repair contingency and you are not outside of dates for obtaining financing. You may be able to get yourself an extension. It is becoming a Buyer’s market so most Seller’s do not want a deal to go south. I suggest seeking a real estate attorney locally. I am in South Florida and can only practice here in Florida.
The property is located in Hernando County, and there are no contigencies within the contract. the seller willing to hold 20% and I am seeking 80% of the property value.
I hope to be able to work this out, I need all the help I can get and I do appreciate your responses and advise.