I am new to real estate investing, and have a property I am making an offer on this week. My coach recommended some hard money lendors, but would like to look for someone local. I am in Columbus, Ohio. The property is as well. A single family residential propert that I want to rehab, and see quickly.
The LTV would be around 70%.
Why HML? Are you needing money for rehab? Is this 70% LTV before or after rehab.
Robin,
Rehab loans will be able to get you up to 100% of the $ needed for the purchase and fix if within 65%-70% of the after repaired value (AVR). Rates are from 14%-18% and points range from 0-6. Most of the loans are from 6 months to 1 year.
What is you plan after you rehab the property? Will you retain as a rental property? If so, you may want to consider immediately pulling cash out through a refi.
At this point I’m looking to rehab and sell, but would not be opposed to renting. The 70% LTV was the property as is, plus repair money.
I moved to slow and someone else put a contract on the property…
How do loans work on rental properties? What kind of interest rate, etcetera?
Thanks again!
Robin
Hi Robin,
In order to determine what products are available for your rental properties a broker would really need to have a short consultation with you. There are so many important details that get over looked. It’s generally best to not quote rates until credit, income, assets, and goals are reviewed.