Hard Money Question
I got a question, I do not have any money in the bank I live pay check to pay check. I have a $50k+ (401k) I own my own home. If I get a hard money loan to purchase a fixer-upper to flip, I nead 10%payment down , $$closing money,$$carrying cost(holding cost) $$if something happen cost. In a situation like this what should an investor do?
House was damage by fire.
For example: Sale price $109000
neads $30000 Repair
ARV:$220000
I would say you best bet would be an equity partner. Somone that throws cash into the deal.
Most HMLs that I have seen will not go > 80 LTV. Some base there lending in LTARV so you have a little head room.
There seems to be enough fat in this deal to split it.
Check out local REIA and this board for sources of equity.
Create yourself a detailed one page flyer and circulate them at your local real estate investor club meetings. Also talk to everyone you can there. You are likely to find other interested investors that will aprtner with you. this works very well bcs you are with other like-minded people.
Good luck!