Can anyone tell me if there’s any private/HML’s out there these days that fund a deal 100%??? It seems that most of the lenders i’ve met recently want a little bit of your hide on the table to be able to do any deals.
For example:
ARV-$500,000
Purchase Price-$280,000
Rehab costs-$20,000
Holding costs (up to 2 years)-$25,000
Closing costs/points (estimate)-$20,000
Total loan amount-$345,000-$350,000 (70% LTV)
This is hypothetical situation. The real question is, Will someone finance holding costs/ closing costs for a great deal??? Although 70% LTV isn’t considered a "great deal in most lender’s eyes in this market, we can negotiate the sale using those figures and hopefully get it down to 60 or 65%. The investor in question is a seasoned builder in the area and is looking to start buying REO’s from the banks. Most of the deals are 50%-65% LTV after repairs. The builder wants to hold the properties for 1-2 years and sell them off possibly through lease option program or other avenues.
Is there anyone that can tell me where to find the right lender???