Posted by Ben Carmona on November 14, 2005 at 24:44:32:
Hello Sandy,
Rehab loans are offered by coventional lenders and hard money lenders. These loans include funds for purchasing and also fixing up. The loan amount is based off of the future value. In either case, if the
loan to value is low enough, no money down would be needed.
A hard money lender can be used in cases where time is limited or credit scores, income, and assets may disqualify somebody for conventional financing.
The terms and fees on conventional financing would be more attractive.
Please send me over an email with more information.
Ran across a sweet little house, 1300 square ft, 4 bedroom, 2 bath, needs alot of cosmetic work, inside and out. Little old lady went into a nursing home and is liquidating all her rental properties. This house will appraise at 50000 to 60000 after its fixed up or more, the area its in N.C. is spending 129 million to start up a Randy Parton Theater, and Music and Entertainment District which is scheduled to open in Jan. 2007 they broke ground last weekend. So I imagine the property value will sky rocket then. Any need to find out how I can get 30000 to buy and fix up this house. I do have 10% downpayment. Any ideas or leads. I have pictures of the inside and out side of the property.
Re: Hard Money or Private Investor - Posted by John Corey
Posted by John Corey on November 14, 2005 at 10:40:36:
Sandy,
Ben covered most of the key points for the financing. Before anyone could be even more specific your details and the deal details need to be factored in. Credit, terms of the sales agreement, plans for how long you will need the funds (minimum and maximum) are some of the factors that will influence the ultimate decision.
On a different but related note…
Ignore the future of the area when it comes to such a large commercial project. Focus on the deal and if you are making a good profit on the way in. What might happen later only matters later. Make sure the deal is profitable and something you can handle now. If you want to wait for future appreciation (if and when it happens as there are no guarantees with appreciation) that is a bonus and should not be the main reason for doing the deal.
Speculators bet on appreciation. RE investors make their profit when they buy and receive their cash when they sell or refi.
It does sound like you are locking in a profit on the way in on this deal based on the high level facts. The devil is in the detail so continue to work out the other aspects including financing. Let me know if you need help with any sort of loan in NC.
Re: Hard Money or Private Investor - Posted by Ed Garcia
Posted by Ed Garcia on November 14, 2005 at 10:39:11:
Sandy,
The first thing I?d like to do, is caution you from using any mortgage brokers that solicit you on the internet. In most cases it will be a waste of your time and the broker can even do you harm by eating up your time to close and then not performing.
An experienced successful broker more then likely would not waste their time with your deal because of the size. (1) There is no demand for loans under $50,000 and they are difficult to get down (Highly scrutinized). (2) Because of the size, these loans are not cost effective without exurbanite cost being implemented by the broker.
My suggestion is for you to find and develop a relationship with a small local bank
for small deals, they are the best source for service and cost effectiveness.
The deal that you?ve just described would fit well with this type of lender.
I think it will also be to your advantage for future business for you to have a lender that is local and caters to the community.
Re: Hard Money or Private Investor - Posted by Chris Macone
Posted by Chris Macone on November 14, 2005 at 10:35:00:
Hello Sandy, Private money investors do have great benefits to offer. I would like to receive more information about your project. Thank you for your time.