Posted by Randy Banks on December 09, 2000 at 15:01:11:
Jeri, if I were you I would get with your local bank. Check for a bank that does construction loans and remodeling loans. I would get a single loan. The lender’s appraiser can appraise the “as completed” value of your project based on your submitted rehab specifications. You will probably want to submit your contractor estimates or contracts for the rehab work. This will give them more confidence in the proposed numbers of the project and will be beneficial to your appraiser to visualize the project. They will fund the acquisition of the property and escrow the additional funds. Later these will be distributed based on progressive draws that will be made to pay your contractors
I have a tremendous deal that I’m trying to put together. and I need a partner. The
Basics is this:
I have a home on Capital Hill in Washington DC that I’m buying for 108,500, it needs
a complete rehab $80k and the After repair value (12 comps in area) is $375,000 +.
The home next door (exact same house) sold for $410,000 in April this year.
I need an investor willing to loan me the rehab money and in 6 months or less make a
25% return on their investment. I already have a loan for the 108,500 to purchase the
property but I need the rehab money to make the deal work.
I have 3 other properties that I can collateralize for the loan.
Is there anyone interested or can point me in the right direction ?