Newbie investors in Northern California -- need some questions answered!

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:

  1. 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???

  2. 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.

  3. Do you think this is a good deal for a 1st time investor?

Any advice would be appreciated.

What bank are you making the offer for? I think most banks wont accept a bid that much lower then asking, i havent had that kind of luck yet anyway.

414k sounds high. 350k better. If you like the property, then make sure you set a hard line on your max price before you go to the auction! Good luck on the hard money covering rehab costs at that level. Sounds like an ok deal, but not a great deal.