Is It A Good Deal?
Hi there
I found a house that is on the market for 240k and when fixed up, the selling is 300k-320k.
if hard money lender will lend me 70% of 300,000(LTV) =210,000
I will offer 170,000. needs repair works about 40,000.
Expenses: closing cost + points+ interest of loan(15%)= 46,000
If sold for 300,000 - 210,000 (Loan) - 46,000 (expenses) = 44,000 -25% (tax) = 33,000 (net profit minus 18,000 (realtor to sell)=15,000 in my pocket.
My question: Am I missing something here? This is my first time, so I want to make sure this is right. Would hard money lender will lend me 70% of 300,000(LTV)? pls help me analyze this...
if your offer of 170,000 is accepted, Id say youve got yourself a great deal.