Foreclosure funding. A good deal?

Financing, Hard Money Lenders, Private Money
1

Hello everyone,
I am looking to purchase a foreclosure property. Purchase price $300,000. I have $160,000 avail on a line of credit. I have been offered HML for 75% loan with 4 points and prime plus 7% for six months.

Does this sound like a good rate?

Will appreciate your opinion.

Thanx,
Rainman

2

I think you have to look at the whole deal, not kjust what the HML has offered. How much potential profit is in the deal? How much will it cost to fix? How long will it take to fix?..etc., etc. To offer an opinoion based on what ypou’ve given us is pointless.

If the house needs $10K fix and will sell for $500K, it might be great. If it needs $100K in fix, you have to hold for a year, and it will sell for $325K, it stinks!

Keith

3

Follow this link to a Spreadsheet I created to evaluate deals objectively.

http://www.dhlc.com/deal%20evaluator.xls

Good Luck!

4

I am a Loan Officer for a Mortgage company in Southern California. However we have licensing for most of the US. I would be happy to look at any loan situation you have. I would like to get a few more details from you if possible. You can reach me at 909 946 0987 ext 3036 or ask for Joshua. Or if you like leave me a number and the best time to reach you.

5

Thanks to all for your responses.

The focus of my question was not so much about the deal but whether prime plus 7 with 4 points sounded typical for HML or excessive.

Thanx,
Rainman

6

in Texas 14% I/O and 5 Points for 12 mo no PPP is typical.

Rob