Hello All
I have a property under contract that i need to close on the 27th of this mo. the contract is for 165,000 closing is 15,000 and the repairs are 30-40k. the ARV is 320,000. is there a hard money lender that will lend me 100% of this deal. my credit is 590. i have this deal under a LLC. this will be my first fix and flip. iv dun wholesale deals before. any info will be great info.
thank you
Hi,
With hard money lenders credit, good or bad is not a problem. Over half of hard money lenders only loan 75 or 80 percent of purchase price, others will loan both purchase and rehab money with a down payment.
If you do multiple deals over 2, 3 or 5 years and your lender gets to know you their are hard money lenders who will finance 100 percent for their best customers after they know you can perform.
In the mean time I think I would wholesale the contract you have, ask for a $10k to $12k assignment fee and let someone with a lot of cash able to do 20 or 25% down to purchase plus carry the rehab, this way you make something and go to the next one.
Why do you figure $15k for closing cost’s? Typically buyer pays 2 percent on average and even if you offered to pay sellers closing costs typically seller pays 2.5 percent to close, even with a transfer tax closing costs would never be 9 percent!
Good luck,
GR
The lender generally wants 10% in the deal from the buyer. I like the answer you received regarding to assign the property and move on that monies can be used on your next deal. Secondly, bring in a partner for that down payment. Love to know more about your deals.