I have a deal that is pretty good and the area sells fast. According to MLS the average sell time for the same type house in the area is 4 to 16 days. I need a hml though, how do I get one with no money down or no more than 1000.00? here is the deal…
59000.00 purchase price
5000.00 max in repairs…90% are already done including foundation
total arp and current mv is 85000.00 and a house in less of a condition sold for 84500.00 less than 3 weeks ago in the same area.
How do I go about presenting this deal to get financing? All my numbers are verified with county, mls, comps, and appraisers.
Based upon the numbers you have shared thus far, the sum total of the purchase price + rehab is equivalent to approx. 75 ARV/FMV.
Assuming that this is a rehab project (and not a construction completion), there are hard money loans that:
a. Will lend up to 70 ARV without collaterization or inward investment (down payment).
b. Will lend up to 75 ARV with either 10% collateralization or down payment.
c. Will lend up to 80 ARV with > 10% collateralization with no down payment required.
General Comments:
a. Need a 600ish FICO to qualify.
b. Loans would cover the cost of purchase and rehab
c. Rehab funding would be provided on a reimbursement basis.
d. With the exception of the 80 ARV program, documentation requirements would either be STATED or LOW DOC.
Lastly, there are conventional ARV rehab programs that allow up to 80 ARV, but you would need to go FULL DOC or BANK STATEMENT and have a FICO score in the mid to high 600’s.
A total sunk investment of 55K (50K for purchase & 5K for rehab) would put you in the 65 ARV enviroment—you would have more lenders/loan programs to choose from if you could achieve this.
Yes, I will sell it right now for 65000.00 as is, all of the foundation is done, the bath is all updated and complete, the kitchen has new ceramic tile, it has a stove already, the paint for the interior is already purchased, the yard is complete it also has rare yellow pine wood floors that need to be restored, but on my findings of the floor it won’t be more than a couple hundred to do it right and have a great floor…there is just a few little things needing to be done and the 5000.00 repair estimate is including any messups. I also saw a house sold last month on the same street a little smaller go for over 90000.00…
Now if I can sell for 65000.00 right now…yes I will, if I can not, I will try to get the loan to rehab it then sell it as I know that area sells very fast.
No, your not…I just no all things can be done…I do have bank statements to verify and docs, but the credit is not in mid 600’s…it is would be right at 600 or so…Your advice is helpfull but…yeah…more positive is great and very much appreciated!! Thank you.
Ok, I’m with you now, My Brain is back !
I just recieved your PM. The reason I asked if you would sell at 65k is…
Because you could tie this up and perhaps wholesale this on an assigns type contract. Could make 5k fairly quick if the market/conditions are as you believe/say.
Hope this helps ! Darin