I have been working on a deal in chicago for around six months, thought that I had financing secured but got the rug pulled out from under me at the last minute. The bank is still willing to approve financing but with a cash investment of $100,000 to $140,000. I am able to guarantee the loan but need outside cash to put in for contingency funds. I am looking to buy a property in or around Naperville, Illinois. and have the property demolished and rebuild a 3500 sq.ft home. I have all the work done, title work, appraisal, everything is done just need the cash. Appraisal is $795,000 with build costs at $650,000. I am offering a 10% return for a 12 month investment, if project goes longer than 12 months I can add 1% per month with a cap of 15%. This is a solid investment. I have all necessary information such as, area comps, sales history which is still strong in this area, etc…etc. This is very time sensiteve as the sellers have been drug through the mud waiting for a closing. I have a signed purchase agreement with them for the land at $255,000. Anyone that can help me out would be so greatly appreciated. I don’t want to lose this deal, there is solid potential for two more deals directly accross the street as well. Thank you in advance.
Keith
Forgive me for asking this, but I just need some clarification.
- Purchase of Land 255K
- Build costs of 650K
- Final Value of 795K.
Ok so Land and Build will costs 905K. Not including hold costs, demo costs, etc.
Yet the home will sell for 795? Am I missing something?