Hard money

Financing, Hard Money Lenders, Private Money
1

Hi everyone,

I have a rehab deal in Northern California I’m trying to make an offer on.

Offer=$118,000
ARV=$291,000
Rehab costs=$72,000

I’m not sure if I should get 203k financing or hardmoney. I asked my realtor to put together the offer, and she needed me to provide POF. Please tell me what my options are.

Thank you

2

203K is a good way to go if you are planning on living in the home. if it is investment property then you will probably need to look at hard money or private money.

3

Yes, the FHA 203K loan is only for owner-occupied properties to the best of my knowledge. Otherwise, is this is a rehab that you are planning on holding, check out your small local banks to find out what rehab financing they may offer (although their aren’t many of these programs left it seems).

4

Any HML recommendation that anyone used before for Northern Region of California?

I went through a list of HML on this site and I’m just skeptical about services and their ability to complete a transaction.

There are a lot of REO properties that are selling at a cheaper pricing than regular sale. Could this be my reason to throw a low ball offer on the FSBO I’m about to put offer in?

Basically, the proeprty I’m interested in is selling for $190k. Rehab cost is about 80k. A REO property thats for sale with a better condition is also selling for $190k.

Any suggestion would be appreciated.

5

In my area(Florida) the appraisers have to put all foreclosures in the appraisal. So if the foreclosure sells for $190,000 and is comp to your property then your house will appraise abut the same. In the past they could take these properties out of the appraisal to keep the value high.