I found a property located in a…I guess you can say descent neighborhood right on a busy street. At first I was going to assign the property but now I’m thinking about doing a rehab and sell myself by a HARD MONEY LOAN . I’m going for a HARD MONEY due to my credit and very low in funds but I need some opinions/advice from you experience investors first. Another investor is selling this property.
*He wants $35k + closing
*He said it needs about $6-7k work and I agree, but let’s just say $10k just incase.
*From what I’ve seen on zillow it looks like it will sell for about $70k & he also said it will sell for about $70k.
The property isn’t really in bad shape but I just think it’s located in a not so great neighborhood… but not that bad either. Personally, I say I wouldn’t purchase it for my family and I now, but I know once I do the little touch ups to the house and some beautiful landscaping I will have second thoughts. Can anybody give their advice on HARD MONEY LOANS and this property?
Any help is greatly appreciated! Thanks
No, because with 10k repairs, and 35k to seller, you are already at 65% ARV if that is the right amount. This doesn’t include points the Hard money lender will charge or the other closing costs. If you find a lender who will go at 70% it has a better chance but still razr thin. I say No Deal.
Well the lender that I’m going with will go up to 74% ARV minus repairs.
What if I can get the other investor to go down to $30k? I doubt he will but it wouldn’t hurt to try. Would it be a deal then?
First off, get accurate comps. Don’t go by what zillow or the seller says! Then you can evaluate much better.
I took your advice and went to a realtor but this is what she sent me and the most accurate thing she can find on this property:
There is no property listed for sale at or near that address, and I did not find anything really comparable to that location within the last 6 months. The structure at that address shown on the Dallas County tax roles to be valued at approx. $17,320 for tax purposes in 2006, and is a 1,023 structure built in 1935 with air conditioning showing only at least one window unit and gas heaters. No subdivision is listed to provide comps. The only property sold on that street included lots and acreage, so would not be comparable.
So how can I get or find some accurate comps or history on this property?
Your beating your head against the wall for a deal that doesn’t sound that great to begin with. I would just move on.
I would say forget it. There are too many unknowns to know if you have a real deal here.
I’ve taken all advice and moved on. Thank you everyone! :biggrin