Found Nice Fixer Upper...need Financing??

Comments(9)

• 
  kfspropertymanagement3rd August, 2004

  Alot has to do with the amount of the unit. Some lenders will not lend less then 50k. Give us some more info and the ideas will come flowing from here.

• 
  sharpREI_PA3rd August, 2004

  Thanks for the reply,
  I have gottent the seller down to $16,500. A contractor friend of mine recently went through the home and we estimated repairs to bring it up to top notch shape to be aorund $6500. The seller originally wanted to sell for $29,900, probably cause other homes in the neighborhood appraised for around low - mid 30's. I figured there wasn't much room to flip it, so I would just fix it up and keep for the cash flow if the numbers work.
  
  Thanks again...any other replies???
  
  Chris

• 
  kfspropertymanagement3rd August, 2004

  Well heres a thought have you thought about partnering up with the contactor? or for a percentage of the sell when you sell it? How about drawing from a home equity line on your current house? Hard Money might work also. Keep turning all the rocks you will find what you need.

• 
  flyingnutjob3rd August, 2004

  Go to your bank (local, not one of the national chains) and ask for the VP Commercial Lender. Tell him you have a property to buy and you want to borrow 80% AFTER REPAIRED Loan To Value on a 6 month Interest only commercial loan/line of credit secured by the property.
  
  Your first draw will be to close the deal, the $16,500 plus closing costs. Then have the banker put $4000 in your bank account. Use the $4000 to fix up the property. Borrow the rest (credit card at Home Depot, 30 day terms at lumber yard, etc). Fix the place up.
  
  Now, if the property is worth $30,000 you can sell it and pocket the $8-10 gs, or you can re-fi investor loan 80% LTV on a 15 year fixed note, and cash flow till the cows come home.
  
  Dutch
  Oklahoma

• 
  sharpREI_PA4th August, 2004

  Hey...
  Thanks for the replies!
  I got better news from the seller. She is willing to drop her price to 15,500 now!
  
  Better deal....
  
  Thanks for any and all advice here!!
  
  Chris G

• 
  DarrenBInvestor5th August, 2004

  If you give an appraiser the list of the updates you will do, they will give you an after repair value estimate. I got a rehab loan from a bank for the purchase price and estimated repairs. Their appraiser gave me this type of appraisal. Also, your local realtor for no money will give you a market analysis based on a rehabbed home in your area.
  Darren

• 
  myfrogger5th August, 2004

  In my opinion it is very easy to determine after repaired value. This is because when you look at comparable properties--they will all be in the condition your property will be at after being repaired!
  
  It works out so nicely... Just run comps like you normally do. Rather than making adjustments for conditions come up with a price and subtract purchase price, holding costs, and rehab costs. From there you'll have an idea of your profit should you decide to flip.
  
  If you do plan to keep as a rental you can have an idea what you will have in it vs what it is worth.
  
  GOOD LUCK

• 
  sharpREI_PA6th August, 2004

  Thanks everyone for the replies. All have been helpful!!
  
  Chris

• 
  kenmax6th August, 2004

  its the norm for appraisers to look at props. in the surrounding area to establish an estimated price you can do the same or get an appraiser. you have said homes in the area were bringing around 30k........kenmax[ Edited by kenmax on Date 08/06/2004 ]