I have 6 REO properties that I have been looking at; 3 of which I am very serious about placing an offer on. Of the 3, my first is a $84k duplex appraised at $495k. I want this to be my “starter investment”. The plan is to acquire this property for the $84k owed, and turn around and sell it lower than the FMV (around $350-400K). I have a Realtor that has given me a written guarantee that they will sell the property within 30 days. If it is not sold in the 30days, they will buy it from me. So already, that assures me that within 1 month of acquiring this property, I will have my +300k profit.
Here is where my challenge lies:
I don’t have a FICO worthy of a 90% LTV,
I don’t have ANY down payment cash
I don’t have sufficient verifiable income.
What I DO have however, is:
a) Property priced at 17% of its value,
b) A guarantee in writing from a Realtor assuring me that if they can’t sell within 30 days, they will buy.
What I NEED is a HML willing to get in on this deal with me. I will provide my own personal guarantee in good faith that if the full amount of funding is provided ($84,000+7,000 in repairs) a full repayment of the loan+interest and fees [at whatever rate] will be paid in full at the close of my sale.
any advice? where to turn? who to talk to? what to do?
All of my investments are in New York City, this one specifically is in The Bronx.
So you say I’m going to need to fund the rehab myself. Even without any improvements, the property is still valued at $495k. The amendments would only “pretty it up” and increase the value from the $495,000. But wait, how can I rehab a home I dont own yet?