Posted by Edwin on April 30, 2010 at 24:49:05:
Are you offering to pay someone $100-200k for the use of his money, or are you wanting to borrow that much?
How should I structure this rehab deal? - Posted by Interested
Posted by Interested on April 29, 2010 at 23:06:08:
Ok so here are the specs:
I have a property in California that is literally in my own neighborhood. Which is very high end, the property is one 1.4 acres which is amazingly huge for this part of the state. It is 5 bedrooms 3,900 sq feet which is also large.
Here’s the catch, the place is a COMPLETE REHAB. I met the owner, she is 90 yrs old owns it free and clear, will NOT do any type of owner carry, she is in assisted living down in Santa Barbara and needs to sell now. It is listed at $550,000, and I think after my conversation I could pick it up for $500,000.
It has an ARV of $1.2MIL after we fix it up, but will need about $250,000-$300,000 in rehab cost. I am a contractor, and I can do it cheap.
I contacted hard money guys today, and I am hoping I can get at least 65% ARV, but I will still need to bring in a partner more than likely because I KNOW there is no way in this economy a hard money guy is going to do full financing even if it is an amazing deal.
So if I bring someone else in for 100-200K, what would be the best way to structure the deal?
Any Thoughts or recommendations on a solid California Private money lender who will do 65-70% ARV, and is actually REAL.
Let me know,
Stephan
Re: offer n structure this deal - Posted by Matthew G
Posted by Matthew G on May 01, 2010 at 12:42:00:
Here’s what I think…
first offer $300k cash with 100k paid at time of refi or sale. the numbers you have offer no room for quik sale or other carrying costs.
secondly even if you do it cheap what are you going to get in market? cheap is not the best way - the buyer will demand what they want. Offer custom home - put finishing touches and closing cost assistance in your ad. I always prefer a quick dime comared to a slow quarter.
Thirdly drop me a line and I will give you some names of reputable cali hard money lenders.
Re: How should I structure this rehab deal? - Posted by BTI
Posted by BTI on April 30, 2010 at 12:53:33:
As far as I’m concerned you haven’t hammered away at the seller carry-back angle yet.
What is she planning to do, go on a $500k spending spree from her assisted living facility?
Get real, she can finance it, she just needs to hear the right offer and benefits.
Dig deeper, actually talk to her because I think you just got a relayed answer from her average agent.