Down Payment Needed
I have found my first property but am in need of the down payment and percentage of rehab. The lender is offering a 80/20 LTV and 80/20 rehab cost? The owner is asking 119K for the property but after checking it out I will offer 90K. Any help or ideas?
I am a very new rehabber as well. Here, we have rehab lenders who will typically lend 75% of the after repaired value (ARV). 75% of the 119k you talk about is just under 90k. Most lenders will still require some down payment, but you may be able to get that from the seller and increase your offer by the down payment amount. Check with your lender, though, not all are OK with this arrangement.
Thanks I will try that on the next deal. Someone else contracted the property before I could get another look at it with my contractors.
What do you mean 80/20 LTV and 80/20 rehab? Does the 80/20 LTV mean 100% financing or you pay 20% down? And not sure what the 20 means in regards to rehab
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The lender loans 80% LTV on the purchase and 80% rehab, I come up with 20%.
KK,
I would first want to determine WHY the rot exists.
Is the stucco leaking water in?
A repair will not be effective if the cause of the condition is not remedied.
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Thanks for the reply. I believe I have resolved that problem by installing a french drain. However I am still getting water seepage.
Thanks everyone for the feedback. I have contacted a contractor for advice.
"Replacing the bottom plate (sole plate) is theoretically pretty straight forward: "
Yes. "...theoretically..."
And the process listed is good.
Like most repairs, though, the devil is in the details.
Stucco, electrical, plumbing, rotten stud end, intersecting interior wall, sheathing connection, and continued water seepage, accessibility, and whatever other "details" I may have missed will significantly impact the basic replacement process.
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We pressure wash roofs all the time with bleach. No problems yet, and a 10 year old roof looks new. Yes, NEW!
I guess we are removing mould.
If you wash from the top, avoiding lifting of shingles, you cause no leaks. Just my $.02 worth.
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In addition to avoiding lifting the shingles, you also need to avoid removing the granules from the surface. A quick web search will reveal some horror stories, with photos.
Appreciate educational responses. I feel better that I can handle with all the -warnings- and advise.