My wife and I have a strong desire to rehab homes in our area (we are addicted to ‘Flip That House’, ‘Flip This House’, and ‘The Property Ladder’). I have scoured the HML resources on the site, and haven’t found what I need. From what I understand, there are no hopeless situations, but we might come close.(for now anyway) Any advice would be greatly appreciated. Here are our facts:
2005 income 56,000 (up from 10,000 in 2004)
I have full documentation of income
Middle Fico: 605 (up from 500 a year ago)
BK discharged 15mths ago (Victim of HMO’s and PPO’s) >:(
New to area, 1.5yrs, so don’t know anyone with private money to lend. No relatives to help.
Haven’t been able to accrue any savings since BK.
Wife is stay at home mom.
So to start NOW we would need. 100% financing of everything, purchase, rehab, closing, carrying etc. from private lender or HML willing to lend in Traverse City MI area. I am willing to partner also, giving the money person the lions share of the profits on my first few deals until I can build up my own capital. We are willing to wait for a few months as our credit score continues to rise, but would like to get started asap, so we can have a house ready by the time the spring buying begins. We would like to go after bank owned properties, but they all want you to be prequalified before putting in offers.
I appreciate the professionalism with which this post is conducted. And enjoy reading all of your replies. I thank you in advance for your help.
Even a hard money lender will generally need you to have a little bit of funds available.
I work with several HMLs and each offer a little bit different options.
The one that loans only locally here in St. Louis will give 80% of the after repaired value. This can cover all of the purchase price + fix up money. Remember that most HML are going to put your rehab money in an escrow account. This lender will allow about $5k upfront. Most will not allow any funds to be released until work has been completed and an inspector can go out.
Another lender I use nationwide will allow 70% but you’ll need some money to start the work. The work can be done in phases to reduce the amount needed.
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