Hi all! We are trying to buy our first rehab, but apparently no one wants to provide hard money loans in AK. Any idea how to go about tracking hard money lenders down here? My husband has years of construction experience and is getting his contractor’s license, I have a business degree too, and the property is a fabulous deal! buying for 160k, 40k in repairs (septic, and part of a new roof incl), and the ARV is 260K. Oh and it’s a single family log home in a good area
Hello,
Your after repaired value may be a little high. Most of the HMLs will allow a seller to hold a small note for the balance though.
There are also conventional lenders which have rehab programs. If everything is structured corretly you can use the equity in the property as your down payment.
They set this up as a contstruction loan which modifies into permanent financing. Much cheaper than hard money.
Thanks for the information! The ARV for an Alaska property is on the low end of property averages here. A 3 bedroom/3 bath in Anchorage would start at around 210K, and this property has 3 baths, and 2.5 acres. The ARV was done with current comps in the area by a real estate agent. It’s not an official Appraisal, but is fairly accurate.
I am glad to know that there are less expensive options out there.
Either way, you can get this deal to work.