How difficult is it in todays market to find private lenders for 14% if I have a short sale approved for purchase at 65% of original loan and want to do a light rehab (rehab using private$) then flip ?
estimating a 4-6 month process.
estimated private loan $450k
any suggestions on finding private $??
I replied to this in another thread, so sorry for the repeat but here it is:
Tal - the way I see it, “65% of original loan” is irrelevant (epecially in some areas). What is relevant is the current value and the after repair value.
So if the ratio of the short sale is 65% of current value will 14% on $450k be enough to attract private $ in todays market, given that stock market so shaky and this is something backed by a 1st mortgage?
Keep in mind that in a strong market 70% is a good deal, but in this market 70% could put you in default before you can blink. In this market, 50% with backup plans like refinance if it cashflows is a good deal. There are tons of deals to cherry pick from. I recommend you stay around 50% LTV.
Do you need help finding a buyer? I might be able to help. In regards to the private lender, not sure if I read correctly, but would need to know our purchase price compared to the AMV.
Thanks.
Chris