Rehabbing/purchase money where do i find it?

Rehabbing, Fix and Flip, Rental Properties
1

Hi can anyone tell me how to make this deal work out, I have a seller of a manufactured home that will appraise out to $106k. I am trying to purchase the home for $63,000 and will need $25k to do repairs. This house sits on over an acre of land.

I will be reselling the home with a wrap around mtg when house is rehabbed for $110 and will find a buyer who has a credit score of atleast 620 and sell them the house by putting ads in the paper etc.

Now does anyone know where I can find fast cash to get this deal done?

2

Deal seems kinda thin to me.

Purchase: 63,000
Rehab: 25,000
Purchase costs: If you get a mortgage or hard money, it’ll be at least 2-5 grand
Holding costs: ???

Even without purchase and holding costs, you’re still only at $12k profit. With it being your first rehab (I’m assuming) it’ll be tough to keep the budget perfect, meaning any overruns will kill your profit.

3

I agree with Rballard. I just did my first one and thank god I didn’t have any big mistakes…otherwise it would have gotten ugly. My spread was around yours. Move on,

Nate-WI

4

…also remember that “manufactured homes” are generally considered depreciating assets rather than appreciating assets…

Keith

5

Does not sound like a good investment my friend. There is not alot of profit after calculating everything in and yes…its a manufactured home. :-\

6

Mgf: have many nuances that you need to know before getting involved with them… (Depending if the MGF is attached to the land and signed off by an FHA or VA appraiser… meaning the footing that attached the MGF to the gound better be engineered to FHA or VA standards. (there is a great confussion in the RE industry b/w the difference b/w MGF and Modular the diff is HUGE).

If the MGF is not attached to the ground all you have is personal property (ie) not Real Estate

Most lenders will lend 97.8% FHA (including MIP financed) plus higher rates than a “stick built” home… Conventional will also finance but i can’t remember if it is 90 or 95% LTV…

the market for MGF is small due to years ago when i believe Conseco dumped at a discount Millions to Billions on the market… (most lenders still have a bad taste for MGF)