Next Level..............
To the pros..............
I have several years experience rehabbing singles and doubles and am looking at some possible loft/condo conversion projects.
I have a strong financial backer who has privately funded my rehab projects until I could get a new appraisal value and perm. financing. He has committed to putting up purchase price + improvement if the value is there. The cost of money is steep using him, however. He charges 15% + a 5% fee included in improvement total.
Does this sound like a reasonable avenue to take? I like the idea because I wouldn't have to use any banks. But is there really a downside to using banks? How did all of you start out?
TIA
Gino,
I hear good things about Pittsburg these days. I have a theory that the old rust belt cities that haven't completly imploded over the last 40 years are due for a resurgence.
Anyway, if I had the kind of investor you have I wouldn't bother with a bank. Yes the money is expensive but not as expensive as an equity partner. Maybe get the bank to do 50% loan to value and use your private money guy for the back half?
Commercial,
Thanks for reply. Yes, things are really changing around here. There is lots of technology start-ups moving into the city looking for office space and PLACES TO LIVE!
Anyways, so you believe finding the right mixture of financing from banks and my private guys is the way to go?