Hello, we are new investors in Northern California. We are looking at a home going into a foreclosure auction on July 22 (we are thinking of bidding on a pre-sale)….2,228 sq ft, .25 acre, “diamond in the rough” type of property. The home needs about $45k of rehab. ARV is $500k. Asking price is $414k. We are planning to offer $350k.
We have three questions:
We’d like to get the rehab costs rolled into the loan? Do hard money lenders typically do that? Therefore, loan would be $395k. I know it depends on the LTV, but are there some lenders out there that do more than 70% LTV???
Do you know of any hard money lenders in CA? I’ve already sent inquiries to hard money lenders listed on this site under Investor Resources.
Do you think this is a good deal for a 1st time investor?
Any advice would be appreciated.