I have talked to a broker but he has told me that lenders won't
loan on the "repaired value" of the home.
Leanne, you are talking to the wrong, or an inexperienced, broker. Check with a realtor who specializes in forclosures. They will have contacts with hard money lenders.
I have come across a deal 1997 DW on 1.15 ac that I would LOVE to get…I need to find about $20K for purchase and rehab of home…anyone have any leads on funding in NC???
Any suggestions would be SO VERY APPRECIATED!!
Re: Need help finding “hard money” - Posted by Ernest Tew
Posted by Ernest Tew on July 08, 2001 at 06:57:18:
Leanne, you might give some thought to individuals you know and who might have cash on hand. The interest they currently earn on savings is very low.
Offer to pay them 12% interest, evidenced by a promissory note, meaning that you will be personally liable for the loan, and then secure the note with a first lien on the home and lot. Use the loan proceeds to buy the property and do any fix-up work that is needed. Then, lease the property with an option to buy.
Another approach would be to get the investor to buy the property for cash and lease it to you with an option to buy. Better, still, hold the option in a Roth IRA and the gain will be tax-free.
Thanks Ernest for your input, but I haven’t relatives that I could borrow from, and don’t know of any investors in the area. Perhaps I could use some advice on how hard I should persue this endeavor… the home has had a fire in the living room…NO structural damage whatsoever (drywall burned, no frame wood even scorched) and looks AWFUL but I know that this cleans up and to redo the living room is not going to be that expensive…am I missing something? I have talked to a broker but he has told me that lenders won’t loan on the “repaired value” of the home, so I’m back at square one… I have a bankruptcy and am not in a “personal loan” position…
I really think this is a good deal…comparable home sales are in excess of $85K there…what can I do to make this happen?
