Posted by JPiper on April 17, 2001 at 08:19:47:
Hard money lenders are asset based lenders. They loan against the property. With a lease/purchase you don’t own the property…therefore, no hard money loan.
JPiper
Need Hard Money Lender Financing For L/P Repairs - Posted by Charles(Ga)
Posted by Charles(Ga) on April 17, 2001 at 03:45:57:
I am Negotiating L/P for 3BR, 2BA with Seller. Seller asking 56K. Need 15K in Repairs. FMV is 95k after Repairs. Property is Located 90 miles Southwest from Atlanta.
Will Need Hard Money Lender Financing for Repairs. Because my credit is BAD, will be able to get a conforming or a non-conforming loan.
If There’s Any Hard Money Lender Who Can Help Me, Please Respond!!!
Thanks In Advance…
Charles(Ga)
Also - The LTV is Too High for Hard Money - Posted by Jim Kennedy - Houston, TX
Posted by Jim Kennedy - Houston, TX on April 17, 2001 at 17:46:17:
Charles,
In addition to Mr. Piper’s observation, even if you negotiate an outright purchase vs. a lease/purchase, your numbers don’t look very good for a hard money loan. Most hard money lenders work with LTV’s of 65% or less. A very few hard money lenders will go up to 70%, but they are extremely rare. If your numbers are accurate, you would need an LTV of 75% to make this deal fly. I don’t know of any hard money lenders that would go that high.
On the other hand, you might be able to find a private lender that will go to 75% LTV.
Another alternative might be to bring a partner into the deal.
Whichever way to decide to approach the funding, it’ll be a lot easier to get the money if you can get title to the property.
Hope this helps.
Best of Success!!
Jim Kennedy,
Houston, TX
Re: Need Hard Money Lender … - Posted by WilliamGA
Posted by WilliamGA on April 17, 2001 at 08:20:34:
Charles,
Where are you located in GA?