Simple Question In A Not So Simple World
Hello everyone,
I put some sniper signs out around my city and have found a nice couple that are going into forclosure. They have agreed with me to sell their home to me for 100K which represents 20k profit for them after the loan is paid off so they can walk with some cash. I can resell the home for 275K easy. This just seems like a pretty smooth deal and wanted to see if any of you more experianced guys out there may have any advice.
Thanks,
Greg
Hello Greg,
What is the question?
JS
I checked the laws and everything seems to pan out well. By the way I see you do some hard money loans. In what case does a lender lending hard money cover repair costs as well as fund the property. Does it just have to be a really sweet deal?
Thanks loon.. Can you please xplain how you would go about structuring that?
Thanks
Quote:
On 2006-08-13 12:15, greg1368 wrote:
I checked the laws and everything seems to pan out well. By the way I see you do some hard money loans. In what case does a lender lending hard money cover repair costs as well as fund the property. Does it just have to be a really sweet deal?
Greetings Greg,
As a rule of thumb, figure hard money lenders will go to about 60%-65% of the ARV – which is the value after the property has been rehabbed. So, in your case, if the property would be worth $275K, you could get around $178k in hard money. And yes, that can be used for both the purchase and repairs.[ Edited by mcole on Date 08/14/2006 ]
Thanks so much for the info. Now I just have to find some more deals!!
Thanks again
Why are they willing to sell you a property for 100k you will easily sell for 275k?
Just seem like an awful lot of equity to leave on the table. They could quick sell by owner for 175k I would think.
What am I missing?