Will it work and can I get the funding?

Here’s the deal:

ARV = 95k
Work = 40k
Purchase Price = 25k

Can I get the funding and where?

It depends on a number of factors you haven’t shared, but the ARV ratio is within acceptable parameters to make it viable (it works out to 68 ARV).

If you could sharpen your pencil in either area (purchase price or est. rehab costs), the more costs you can roll into the ARV loan (i.e. closing costs and mortgage payments during rehab).

You need to give some consideration to your exit costs; things like capital gains, selling fees, etc. need to be factored in your final ROI calculations.


Scott Miller

I just realized I didn’t answer your question…if your scores are 550 or above and the ROI is OK with you, you could qualify for a 65 ARV hard money loan.


Scott Miller

As Scott stated you need to find a Hard Money Lender. They will loan you the money based on the ARV value that you stated. Shop around there are literally hundreds out there. Talk to a few before you make the final decision.

Good Luck!

My credit score is around 650.

Where do I go to find these Hard Money Lenders?

I know the ROI isn’t very high, especially with the amount of work that I’m doing to the place. But I don’t really mind it too much.

Do you think this would be a good deal to wholesale?

Thanks everyone. I appreciate the responses. I’ll keep you informed.

Where do I go to find these Hard Money Lenders?

You can try this list.