Is it possible to do this?...... - Posted by Charity

Posted by Laure on June 13, 2000 at 22:13:46:


Is it possible to do this?.. - Posted by Charity

Posted by Charity on June 13, 2000 at 15:16:04:

If you find a home that you can get hard money on, but you won’t get enough money to do the repairs, can you get hard money for the purchase and then money from a separate hard money lender for repairs only? Is this feasible?


Re: Is it possible to do this?.. - Posted by Dave T

Posted by Dave T on June 15, 2000 at 11:32:02:

Yes, it is possible. Amidst all the comments about illegal activites posted below, I am not sure you really got an answer to your question.

As long as all your income and debt is fully disclosed, and you can find a willing lender, you can do as you propose.

May I suggest that you instead look to your local bank for an unsecured loan for the rehab. Assuming that your rehab costs are within reason, you have good credit, and do other business with the bank, you may be a good candidate for a personal credit line.

My bank will do this for me for up to $20K, unsecured, interest only with the full amount due in 12 months.

Just another approach for you to consider.

Re: Is it possible to do this?.. - Posted by eric-fl

Posted by eric-fl on June 13, 2000 at 21:12:27:

ah, I see you’ve been doing some homework. You have run into a similar quandary that I had when first starting out in rehab - most hard lenders will go to 65% LTV max, and that will usually cover purchase price, closing and carrying costs, but where does the money for repairs come from?

Well, what I did was, I took out a wallet full of credit cards, and charged about $5000 worth of tools and materials, and did most of the work myself. Never again. Good lesson, though, I learned a lot about all kinds of different repairs - I can now do finish carpentry, vinyl and ceramic tile, hardwood flooring, drywall, basic plumbing and electrical, painting, and minor plaster repair. I also discovered my primary hobby by accident from all this, woodworking. I just “felt” best working with wood better than any other material, but be warned, if you go down that path, there’s no going back. You know you’ve lost touch with reality when you decide your 50 tooth, thin kerf, carbide tip blade just isn’t doing the job anymore, and you put the 80 tooth, TEFLON COATED, carbide tipped thin kerf blade ($80.00) on your Christmas list.

I did eventually wind up making some money, but gosh, there’s easier ways to make a buck. I’m creating my marketing plans and materials for land contract/ L/O type deals as we speak. I am hoping this is an easier path. I know no money down deals happen every day, but the odds are you’re going to need at least SOME capital to get started. Oh, and to answer your original question, no. 65% max LTV means just that, max. They are going to search for other liens before making the loan, so the only way you could do this would be to be fraudulent, like two closings on the same day, before they record it or something like that. That would be lying on a mortgage app, I think it’s a felony.

Re: Is it possible to do this?.. - Posted by PBoone

Posted by PBoone on June 13, 2000 at 19:22:51:

Yes, in the beginning it is more difficult than after extablished relationships

I think it’s a felony? Oh yeah! (nt). - Posted by Bill Gatten

Posted by Bill Gatten on June 13, 2000 at 22:18:23: