Cash Offers To Bank Owned Foreclosure
I'm looking at a foreclosure that's currently bank owned and listed close around 70% of ARV (which i think means after repair or retail value). This property would need about $20k in repairs to make it marketable, and still leave a tidy profit range. This would be my first deal.
The bank indicates they'll take a cash offer. Would they be open for some seller financing (or a balloon) payment in 6 months? Has this ever worked before?
If not this it's likely I'll have to persue a hard money lender. Any suggestions?
Hey ,
Ya never know unless ya try!
C- :-o
Just keep in mind that HM lender will not finance more then 70 % of FMV.
Dmitry
Unless the bank is a local bank it is nearly impossible to try for seller financing. You should work with a mortgage broker or hard money lender and get the funds that way.
Better yet buy it with cash and then put a loan on the property once you close.
So the property has already been through foreclosure and is now owned by the bank - also called an REO?
What is the ARV - after repair value? How did you arrive at this number. What is the current as-is value. Do you feel comfortable with your 20k repair estimate?
Sure the bank will take cash. But do not look for a bank to do anything creative like holding a note.
Brenda
myfrogger is probably write that I should persue the hard money lender...
I would try to get a line of credit.
Lori
[addsig]