OfflineToday I went to Narragansett to look at a beach house. House is about 1400 sq. End of a cul-de-sac. Ocean view. House needs total rehab. Husband died and never finished building the inside of the house. Half of the house is finished. Half is bran new construction. House will cost about 100k for rehab. House is on the market for 399k. House is assessed at 630k presently. Houses in the area sell about 700k to 800k. The house has been on the market about a week. There are 3 offers. I would like to offer 350k cash no inspections or apprasials. Close in a week. 100k rehab brings me to 450k. Even worst case I sell the property for 600k I still stand to make 150k. I could do a construction loan. But cash is king and would get me the house. How do I get the cash? I need a hard money lender that will put his name on the property as collateral. Where can I find one of these people asap. Or does anyone have any other solutions??? I have to do this quick because scores like this move very fast in my area!
Sheri -
All Hard & Private Money want skin in the game unless you have a track record with them.
You can try to use proof of funds from www.cashformyclosing.com and get the offer accepted, Then act fast & show the HML your deal. If they want skin in the game, find another lender who will fund the skin.
I know its hard, we're all in the same boat.
Google Hard Money Lenders and call everyone of them once your deal is accepted. That's just how they're working right now. You need to show them the deal...
Jason S.
San Diego, CA.
**All CASH House Buyer!**
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What State are you in?
I have created a Hard Money Lender List for different states and if they deal with residential, rehabs, land and or commercial. They all have different LTV's and ARV's, points, fees, no docs, no credit checks, with credit checks, or very low scores, and their own rules. They are private lenders so they all have their own rules on who and how they lend out their money. Jason is right, they want to see your skin in the deal (almost all of them). However, if you call and explain your deal, have your numbers all worked out in detail (how much plumbing, electrical, roofing, kitchen, bathrooms, exterior, interior, etc.....) and have a plan of exit strategy, they may consider you. You never know until you try.
Send me a private message on what state you're in and I'll send you what I have as far as HML lenders nationwide or hopefully in your area that you can start calling.
Donna
DMD Ventures LLC
Thank You for the link! I'm going to check it out next. The thing is, I have about 200k cash to work with. Which could be collateral. I presently own 2 investment houses. With another one under agreement. One with a morgage and one cash. The cash property I could use as collateral but then I'd have to hold it. But there's soo many cherry picks right now that I don't want to stop and hold anything at the moment. Right now Im doing good flipping. Well, getting started. lol The ball is finally rolling is my point. But if Im turning over then I don't have collateral anymore. Or I do but in movement. The way I see it is, I can put 100k into a house and 5k-20k rehab and make $20-$40k profit. Or spend 350k and 100k rehab and make 150-200k profit. The effort and time is the same. The profit is difference. So my goal is to keep my little house flips and graduate to the bigger fish at the same time. I was always taught not to put all my eggs in one basket.
It sounds like you have it figured out, Sheri. Keep up the good work and keep us all informed on how and what you are doing.
Brian
Open a home equity loan from one of your houses.
Thanks Brian!!
I don't have it all figured out yet. =( But I'm working on getting much better at it. lol I might have to pass on this property. That breaks my heart! I contacted Brookstone. Getting the ball rolling there. I am going to different banks to take out a secured loan to build my LLC credit. The realtor for this property called me today. I dont have an answer for him because I don't have the funds squared up. I hate to think someone else is gonna get my project. =( But I'm not giving up til the house is no longer for sale!! If not this one then I guess I'll be ready for the next one. Its just big ones like this are few and far.
Hey Rick,
Great idea! But if I open a home equity line on one of the house then I'll have to hold the house vs flip the house. I don't want to hold propertys. I want to move them. Gotta make an income! =) Plus, houses around here sell during spring & summer. Fall means the fall of sales. lol And winter is dead. So if I hurry and sell the couple of houses I have now then I can buy a couple more probably a pinch cheaper in the winter. Because if people are selling during the winter then they are probably pretty desparate. Hold and rent thru the winter and put it on the market for the spring and start my sales up all over again.
My goal here is to continue my little flips without tieing anything up
And -
grab the big house. Rehab it and sell it for spring.
So I need the cash. Which doesn't happen to be pocket change. The rehab cash and be able to wait about 7 months before actually selling it.
Residential & Commercial Loans are available for Purchases, Refinances, Cash Outs and Rehab Loans. We have true asset based loans in Houston, San Antonio, Dallas and Austin Texas. The LTV's and ARV's are up to 65% and in Austin TX up to 70%. The California loans are up to 60% LTV's and in some cases may not require an appraisal.
John Broussard
Newbridge Investments