I live in Cleveland, Ohio and is considering a hard money deal. I was wondering if you could give me some advice or precautions before doing my deal.
What are the parameters of the deal? What type of information do you seek?
By the way…GO CAV’s!! :beer
here’s a short breakdown: the house is for sale at 52k and is appraised at 112k. with the rehab and labor, the total purchase of the home will be around 70k-80k. after the rehab, the appraisal value should go up to around 125k- 135k. i have a prospective buyer ready to purchase after the completion of the project for 110k, thus leaving the buyer with equity 15k- 25k in equity within the property. how does this deal sound to you experienced hard money lenders or investors?
This sounds like a good deal; win-win for everyone involved. Provided all you numbers are accurate, you shouldn’t have a problem finding a Hard Money Loan to fund your deal.
There are a couple hard money lenders that service the OH area.
You will find though that most hard money lenders that base the loan on the ARV and provide rehab funds will want to see your credit and verify that you have some reserves during the rehab process.
There are a number of hard money rehab programs offered in OH ranging from 65-80 ARV—FICO requirements ranging from 550 to 640—Doc requirements ranging from NO DOC to Lite DOC…
Regards,
Scott Miller