Hi, I am hoping to find an investor or lender that can help with a equity loan on my home that my wife and I are purchasing on a note and have been living in for three years.
The balance of note is aprox. 45,000 property should apraise at 80-85,000.I want to do some rehab work on home to help raise value and equity.I was a licensed general
contractor for ten years and have done all phases of renovation and repair work on rental properties for realtors and investors previously.I have the knowledge and ability to
do quality improvements for a fraction of a contract price doing work myself and discounts on materials.I just recently replaced roof on home complete with new plywood.
Neither my Wife or I have the good credit due to many factors and our scores are low.We have recently applied with a mortgage company that siad we where approve and
set a closing date and then ran our credit again and said our scores dropped because of inquiries.We now are in a difficult spot and don’t know what to do.We are willing to
pay higher interest due to our fica score because the money will be reinvested into business expansion for our transport corporaton and another single residential property
we purchased on a note for 25,000 and want to rehab and flip.We will secure invetment or loan in any way we can and would like to pay off short term.Please help with any
advice, info. and/or offers.

HML loans are generally short term. Let’s say that you can get a HML, how will you refinance this to pay them off?

If you were looking to just use the HML to fix and sell the property, that may work.

I will do the needed rehab work mostly myself since I have extensive experience in this field and materials are available to me at contractor discounts.The work will be completed to obtain a quality,clean and appealing home.I will list The property that is vacant ( and possibly the home I live in) for sale at market value (aprox.65-70k?vacant property)(80-100k property I live in)with either up to 5k-? gift of equity or closing costs paid.To hopefully
motivate buyers.If a buyer doesnt come along in a short specified amount of time.The property/s will be listed at full market value with possible owner financing. DP will repay loan if sale can not.

Property #1
purchase 25k
T&M,insurances,etc. 10k
sale 65-70k
gift/closing cost 5k?
profit 25-30k

Down Payment on note 25-30k

3rd option if property wont sell obtain mortgage and pay off loan.

Property #2
balance 1st mortgage 45k
estimated value 80k
arv 100-120k
T&M,Insurances,ect. 15k
sale 100k-120k
gift/CC 10k?
profit 30-50k

25% DP on note will repay loan

or refer to 3rd option

This may not be 100% exact but maybe your expertise could help.I greatly appreciate any advice .

Thanks Drew

I want to be clear on your project(s).

You have a property that you are currently living in that needs to be rehabbed?

You have another property just purchased for $25K that you want to fix and sell?

So 2 projects?

Your goal is to get a 2nd mortgage (equity loan) on the property you are living in. This will give you enough money to fix up.

Will these funds also becovering the work needed on the 2nd property?

So once the work on the 2nd property is done, you will then have enough profit to pay off the equity loan orginally borrowed.

But you intend to sell that one as quick as possible also?

If this is correct, a hard money lender usually will not give a 2nd lien.

What they could consider is actually giving you a loan to payoff the balances on the 1st notes. This way they take first position. A loan amount equal to 70% of the arv could be made to cover payoff, fix up, pts, and several payments.

Yes,2 projects,1 primary residence owe 45k value 80
rehab 10-15k arv 100-120k this property I will sell if need be to pay off loan if not needed I will keep for time being.

                    2 single unoccupied property 25k note

rehab 10k arv 65-70k this property is definitly for flip

yes a mortgage on primary res. to pay off first is fine for 1st lein position.Also 1st position would be available on 2nd property if needed.Yes you are correct on the rest.

To further clarify,yes the funds from mortgage on prime res.(depending on actual amount)should cover rehab on
both properties and holding costs on 2nd property.

Thanks Drew


That makes sense.

A hml lender should be able to get this done between both properties.

Sent you an email

Thanks for your response,help and info Ben.

Are you still in need of this loan?