found deal need help,,,

[b][/b] I found this house that is a REO. its in a part of town that has had alot of growth and in a great area. the house appraises at 225k. the bank has 155k invested in it. ( i looked up the tax records) anyway they are selling for 179k. house has been on the marked about a month and already been reduced in price. here is my question one: what should i offer. the house needs some repairs (not many)
two: can i get a hard money lender to lend me the money so i can close faster and offer cash to seller to lower price.

three: if i use a hard money lender can i then refinance with a conventional loan to pay back the hardmoney lender?
im just getting into real estate investing and would really like some input.

also is there anyone out there interested in being a mentor. i don’t ask for anything but just to show me some of the ropes.
Newbie in Nashville

just cuz it appraises at 225K…doesn’t necessarily mean it will SELL for that.
If the house doesn’t need many repairs…and it appears to be such a great deal…how come somebody hasn’t bought it to live there already?

My personal formula is to offer 70% of assessed value - repairs

Once you have purchased it with hard money you can easily do a rate and term refinance against the current (new) value. Just don’t list it for sale until the financing is done. :wink:

Can I ask why you wouldn’t list it until you have refi’ed it?

I am new too…thanks!


Lenders won’t refi homes that are recently listed without a BIG prepay penalty.