I’ve been looking at possible rehab’s for about a month now. I finaly came across what seems like an excellent deal.
I’m just getting a little lost in all the steps.
here is some information about the house
-bank owed foreclosure
-4 bd 1 bath… could easily add another bath
-SqFT not sure… aprox 1800 ( will know monday)
-1/2 acre
-terminte problem, bank is paying for treatment next wednesday; no structural damage
asking price: $36,900
rehab costs(aprox.): $9,000
comps(re-agent is working on) aprox: $60-90,000
RE agent said I should offer 32,000. I talked to a friend of mine that does mortgages and he said he really can’t do a loan that small. I have 10,000 cash but i’d like to save that for the rehabbing and holding costs.
So is “hard money” my only other option? I know nothing about it…
I would greatly appreaciate any suggestions or help.
Why wouldnt they be able to do a loan that small? My guess is that either hard money or asking the bank that owns it to finance it to you on a balloon or somthing, not really sure what to say.
I have a lender that will lend on 75% of ARV. They also allow you to roll in up to 6% for closing costs. The only stipulations are that minimum loan amount is 50K, borrower must go full doc, and a general cointractor must be used if rehab is over 20K. Sounds like the loan you have been looking for.
I think I need to talk to the local banks… I talked to a friend of mine that sells mortgages.
Chris, that loan your talking about… 50k minimum wouldn’t work… house is listed for 36,900
I’ll talk to a few local bankers and see if they can help… I currently have one mortgage would a second mortgage be a problem? or would I seek a different kind of loan?
Many Mortgage companies don’t do mortgages for under $30 or $50K depending on the bank. You many want to talk to a commercial banker on a loan for this property. In my experiences most bankers consider this type of loan as speculation and they are not egar to do it. They will like the fact that you have money of your own to invest. It will depend on your credit and the bank. You may want to try some of the smaller local banks. To save time you may want to spend time on the phone and call banks to see if they do construction loans.
Nate from Wisconsin got the bank to purchase the house and remodel it from the same bank that was selling it. He is on the forum frequently.
Christopher - does your lender have a website or do you have any contact info? I am also looking to get into the rehab business and am looking for reputable and available funding options. Thanks!