Hey everyone im hoping some of you can help me out with some answers to a few questions I have?
I own a house in pa free and clear and it needs some rehab work done to it, where would a person with bad credit get the money to fix it up from? The house will be worth 40-50k fixed up but i needs 20k to fix.
Pluse after it is fixed how would you sell it to pay back the loan once you found someone to give you money to fix it?
Thats all I want to do this project just trying to figure it all out before I get started, and any help would be appreciated. And yes Im more than capable of fixing it myself as I have been in the home improvment business for over 20 years just need the money and knowledge of how to get the money and how to get rid of the house and pay back the money.
In the past we went to our local bank and got a personal loan for the “repairs” not rehab. They oput a lien on the prop. They never did an appraisal as we just wanted to get about 70% of the sev.
We are about in the same boat again. Sounds just like you. We bought a house at auction that we own free and clear. The after repair value should be about 50,000. We got it for 4,800 but it needs 15-20,000.
We will probably go back to the same bank…The key was that our loan officer said the bank dosn’t like to think the property is vacant and needs rehab…repairs howvere for a investment property are quite acceptable.
I am not sure if we’ll qualify for another loan and if not we might look into hard money.
They would loan 80% of arv for 9-12 months then we would refi w/ them or cash out.
Hope this helped.
Either rebuild your credit or sell as is. You are asking to borrow about 100% or more of what it is worth now.
This would be very hard even with good credit.
They would loan 80% of arv for 9-12
how much higher is the interest rate on these loans. I’ve never seen anyone mention it.
I think the int rate is about 12-15%.
I could be off, but I think they are pretty high.
The hard money lenders around my area charge around 11% int plus a $2500 closing fee. Do any of you have equity in your own homes? Do you have family that could loan you money on a short term basis if they could be deeded interest in the property? Have you considered lease optioning “as is”?