Hello,
I would like to know if it is possible to get a hard money loan in our situation, here is the deal…
My husband and I have a house in North Dakota. The house is a large 3 bedroom 2 baths, with an extra family room, bedroom (non-egress), and bathroom along with a large laundry room downstairs. We have had the place for 5 years and owe about $71,000.00 on a C4D. We had a realtor look at the place as we want to sell it, she said the value would be $125,000.00 - $135,000.00 as is. She said if we could do a little updating like new flooring, paint, etc we could raise the value to around $185,000.00. In order to do this we would need a loan for $15,000.00 to $20,000.00.
We don’t need the loan to be for very long. The housing in this area is selling quickly as we are close to Minot and the Western part of the State. I would really appreciate suggestions from those who are far more knowledgeable than I. Thank you in advance.
Hi,
Yes you can get a hard money / private money loan.
If your willing to leave your tenant in place and work with the tenant to coordinate construction activities you might be able to get a private money loan rather than a hard money loan the difference being interest rate and points.
If the tenant is gone or going to go before construction your only choice is hard money (Private money lenders do not loan on vacant homes) this loan would be more interest and potentially points.
Owing $71k you can probable borrow 70% LTV or $91k from a hard money / private money lender. You might find a lender under this scenerio willing to loan $20k behind your existing first as a second trust deed.
But you do have enough equity to get $20k the question is who would be willing and which type of loan do you end up getting.
There is a list of hard money lenders on this REI Club website, look in the left side column under Hard Money Lenders or Google for hard money / private money lenders for those who will lend in your location.
GR
Have you had any luck with a HML in the Minot area? Have you thought about keeping it for a rental? I have multiple rentals near Minot and I have been doing very well with them. My focus has been furnishing them and combining all utilities and then renting them to companies at good rates.