I currently have a duplex under contract & am looking for a hard money loan or a private investor. The property appraises for $68,000 & the purchase price is $24,000. I have only about $1500 to put down so would need to borrow full purchase price. Anyone got suggestions on how I could finance this property?
I love good deals! It look like you do as well. I also love the fact that you are out putting properties under contract and then trying to find the funding. That is the way to go! I always tell people, find the good deals and you can find the money. The money is simple to find once you have the good deal. Great job for taking action…
For starters what do you think the property is worth. When I say that what is the 2 week sales price. Meaning if you put it on the MLS today, at what price would you have offers in 2 weeks. These offers dont need to be cash, they could be financing so it would be a 45 day process. Appraisals these days don’t mean anything.
If you are unsure how to do this you need to get access to the MLS. You can do this by calling an agent and asking to meet with them in front of the MLS computer system. I like to see the Lowest Actives and Lowest Sold within 5 miles of the property. Why 5 miles? because buyers dont care about the 1 mile radius that appraisers use. A buyer is willing to drive a few miles for a better deal. If you limit to 1 mile you may over price the property.
Also the only think you are comparing is square footage. In buyers dont care about style. If it is an up and down or a side by side it does not matter when you are looking for low sales price. Agree you will get a better price with a side by side. But too many people when looking for a price ignore the up and down for $20,000 less and only use the side by side as a comp. I believe you need to use the up and down as a comp knowing that your should sale for more money. The important word is should.
Also where is the property located? This will have alot to do with how can help you with this.
Happy Investing
I would say if I sold it today I could get $45,000 out of it. It is a side by side duplex. The property is located in Louisville, Ky.
Have you tried any hard money lenders. Maybe one might go for it is the deal is really that solid, with the $1500 you have to put down.
I have tried to use the link on this website for hard money lenders but there are only 2 in Ky & both require you to borrow $250,000 or more. I only need $24,000
I would not waste your time with Hard Money Lenders, you lack the cash to actually qualify for a typical Hard Money Loan since they will not finance that high of an LTV for you plus closing costs, fees and their points. Also if you lack the cash or means to support at least the monthly interest payments (based on a rate of at least 10% annum) then you are going to default very quickly.
Don’t go by the general terms that HML’s advertise, there are a lot of key details they do not disclose upfront or accurately … and IMHO should follow standard Truth in Lending and Truth in Advertising Regulations.
If you can possible find a private individual who is willing to loan you the money that would be the only real option … but finding someone like that (who is also honest and legitimate) is like finding a needle in the milky way galaxy.
altfundingpro
It sounds like you have had a bad experince with hard money lenders. I would be very intrested in find out what happened. I know lots of hard money lenders that do not require any money down and do not require any cash from the borrower. I understand that all hard money lenders will not do this.
I think there are two types of hard money lenders 1. an individual that has a few hundred thousand doallers that changes his points and terms, and underwriting based upon how he is feeling that day 2. a hard money company that is made of private investors that has a set underwriter guidlines that stay consistant. I think it is important to find the latter
What have you found not disclosed upfront or accurately? I am really intrested in hearing why you feel the way you do about hard money lenders…