How to finance a house that doesn't meet Conv. loans

Financing, Hard Money Lenders, Private Money
1

How would I finance a house that needs rehabb if it doesn’t meet conventional loans and the seller is asking for cash only?

Thanks
auggflo

2

Try a construction loan or hard money. If you need the name of a lender let me know.

Greg

3

The seller asking for “cash only” is a bit silly. It doesn’t matter if you have cash or financing. The seller gets all of their money at closing. The only possible difference is the speed of the closing. I’d be a bit weary and make sure to get a full inspection done. If they demand cash, I’d think they are hiding something they know the inspection (required by a lender) would turn up. Call me a pesimist.

4

hard money closes quickly. make sure you get all the information about this property before jumping into it.

5

If I were to look for a private investor to finance this house and rehabb for me, how should I present the deal? How do I secure their money using the house?

Thanks
auggflo

6

HML uses the property’s value as the loans qualifications. You can usually borrow up to 70% on the property. Check out the HML links on REIclub.com to find someone who can help you. They will tell you exactly what you need.

7

Mark, so if I have a house selling for 80k with a fmv of 200k, I might be able to borrow about 140k? The house needs about 40k for rehabb, this might work.

thanks
auggflo

8

there will need to be an appraisal done, but if it appraises for 200k (as is or ARV) you should be able to get a loan for 140k which will give you the cash you need to do the repairs, correct. If you need help finding a lender let me know.

9

Mark I’m in CT can you help me here from there?

Thanks
auggflo