I have the opportunity to purchase a lakefront home (Claytor Lake) in VA that is worth $400K to $500K for just the lots. (Double Lot) It also has a 2 BR 2 Bath home with a double decker deep water dock with boat & boat lift for $150K. I would like to purchase it (LOL!) and rehab it ($150K) and then refinance it to a personal 2nd Home/Seasonal Rental Home.
Any ideas of how? Could this be a straight HML and after 4 to 6 mos converted? Or are there restrictions?
Thanks!
Ray
Why do you need a Hard Money Lender?
It also has a 2 BR 2 Bath home with a double decker deep water dock with boat & boat lift for $150K. I would like to purchase it (LOL!) and rehab it ($150K) and then refinance it to a personal 2nd Home/Seasonal Rental Home.
Total = $300K
Any ideas of how? Could this be a straight HML and after 4 to 6 mos converted?
I rent the home I live in now & I have 4 rental properties. The bank/broker frowns on buying a home from a Relative that needs updating/new additions. In the end the home should be worth $500K to $600K. I want to refinance it then with an interest only loan if possible. It is hard to claim it as a 2nd home, because I don’t have a first home. I also can’t show cash flow until repairs/construction is complete. Got any ideas???
Hello, What is your financial status? Would you be able to raise some capital to achieve your goal?
I teeter on the 680. Always 1 above & 1 below with one constantly going up & down. I make $180K/yr Salary plus break even counting Taxes/Ins/Rents/Mort on rental (Approx $500K Rental Property Loans @ $4k/mo) and have $50k in savings but have lots of debts. I’d love to get a signature loan to remove the monthly $$ from Credit Cards. LOL!
That is why I was thinking HML. Got any ideas?
Ray
The simple answer is to say clean up your credit, pay off your debts and get your credit score up and get the money you need. Even hard money lenders in our area (central FL) are looking for credit scores above 700. They’ve really become more like traditional lenders (while my traditional mortgage lenders are looking more like hard money lenders all the time!). I guess they’ll meet somewhere in the middle somewhere in their underwriting requirements.
Lesson: a great credit score makes a big difference, regardless of how sweet the deal may be, or your level of income. I’ve been in this position myself in the past.
So, this seems to leave you in the position of finding true hard money (credit/income doesn’t count) or taking a partner who, will of course, wants a controlling interest in the deal. If I were putting up money for such a deal, I would certainly ask for such an arrangement. You’d be looking more like 50% LTV based on after repair/construction value with you fronting the construction costs out of your own pocket.
BTW, why is there a 2/2 on a $250K lot (half of your double lot)? Is something like this even worth rehabbing? Or, does it make more sense to tear it down and build a $500K house on it for $350 in construction costs (~30% builder markup) to end up with a $750K home. Multiply that times two and you’re looking $700K construction costs. Without knowing the market and local construction costs, how do you spend $150K to build houses suitable for such valuable lots?