I’m thinking about purchasing this property located in Atlanta, Ga the going price is $650,000 and it’s 7,135 sq ft. and it sits on 6+ acres of land and it has a 2 bedroom 2 bath guest house, pool, pool house,
3 car garage, 6 bedroom, 6 bath, a libary, a ballroom, wet bar, living room, dining room, large kitchen, deck, all brick. The house is nice, now it does need a new kitchen, and a roof, and painting of all the rooms and a landscaper, but I really think that it’s a great investment. I’m new to this hard money loan stuff, so I’m asking what do you think I should do? How long will I have to get this property fixed up and how much will I have to pay monthly until I get it completely finished. I think that this property could easily go for 1.5 million on up. If I had to guess I would put @ $250,000 into the property because it a beautiful mansion. Help, please my first Deal!!!
Thanks Kamillion
your first deal huh.
that’s alot of mula for a first deal.
who’s doing the work?
how much cash do you have? or do you have partners?
I don’t have any cash, but I do have an investor with at least a 800 credit score, I talked to a contractor yesterday that is willing to go with me to look at the property to see what he thinks it might cost to do the repairs, not to say he would be the one I use. I’m jst trying to get an idea of the cost. I know that I have to be careful when picking out a contractor so I will be very careful about that.
When using a Hard Money lender, they will be really concerned with the current value of the house, the expected value when finished, and most especially, the credentials of the contractor.
Your credentials and those of the ones doing the work will govern all else. That this is your first deal will not encourage them.
They will also want 50% LTV (finished LTV that is) and you will have to have proof positive that that is the true, final value.