Looking for financing

Financing, Hard Money Lenders, Private Money
1

Hi everyone,

I recently got my masters in Architecture and work for a prominent high-end residential firm just outside DC. I know a lot about construction and have many contacts with contractors/sub contractors through my office. There is a house around the corner from my in-laws (also outside DC) that has recently gone on the market. It is priced at least $250k below market, but needs about $110k worth of work. I would love to flip it, but do not have the financial means to do so. I have A TON of student loans that I have just started repaying, so there really isnt any way that I am going to qualify for a mortgage, or even be able to make monthly payments. This house is a slam dunk though, and I know it wont be on the market long.

Does anyone know of a way for me to get financing, or at the very least get paid a finders fee to someone who does have the means to buy it (I really dont want to do the latter)?

Thanks so much. :slight_smile:

2

You could use a hard money lender to fund the transaction. They’ll typically give you 70% of the after repaired value. The cost, payments, money to fix up, and purchase price can all be covered if it fits within that 70%. Hard money lenders charge higher costs and rates because of the risk but these loans work out great for someone in your position. Remember though that HML do not advance out any of the funds for rehab work. Although the have a title company hold the funds in an escrow account, the money is only released for work that you complete and have inspected. So you would need to split up the work into 5-10 phases and either have a flexible contractor who can get paid after each phase or have some working capital to get started. Reimbursements take about 48 hours for an inspector to get out and wire to be sent.