I am bidding on a HUD foreclosure that I intend to rehab and flip. I am offering $22,100, and the ARV will be approx $47,000 (on the low end). I am having a hard time locating a Hard Money Lender that will lend for a property with this low of a ARV. Can anyone offer any suggestions?
Thanks,
Travis
It is becoming increasingly difficult to find any lender’s willing to accept low loan amounts.
The percentages allowed under Section 32 barely cover title and Lender fees.
I am assuming that the HML’s are falling under the same Section 32 Regulation Z guidelines of High Cost Loans.
If they are then they are having the same issues.
I’m having the same problem with a project i’m currently working on.
What I don’t get is this … why do most HML adversite with slogans like “Specializing in hard to do loans” when they wont work with anything under 50k.
Don’t those types of loans fall into the hard to do catagory?
what they should say instead is
“If we can’t charge you up the @ss then we won’t do the loan”
at least thats more honest.
MY PARTNER AND I JUST DID THIS SAME THING WITH A HUD FORECLOSURE. THE PURCHASE PRICE WAS $22,500…THE FIX UPS WERE ABOUT $17,000…THE AVR IS AROUND $70,000.
WE HAD NO PROBLEM GETTING THE PURCHASE MONEY AND THE REPAIR MONEY.
THERE ARE SOURCES OUT THERE FOR YOUR INVESTMENTS.
FEEL FREE TO CONTACT ME.
Actually they don’t fall under the same laws as traditional loans, I have some contacts that will do loans like you have been speaking of…give me details…