Rehab Shell - Posted by Sharon

import · September 28, 2005, 2:56pm

Posted by John on September 28, 2005 at 16:11:57:

Sharon
Where in MD?

import · September 28, 2005, 2:56pm

Posted by Sharon on September 28, 2005 at 14:56:02:

Hi All,
Need advice, I have an opportunity to purchase shells, needs complete rehab in MD for $30,000 or less. I don’t have enough funds to purchase these properties cash. I was told by my mortgage broker, a bank will not finance such a small deal.

Does anyone know whether any hard money lenders would be willing to finance these deals in MD. By the way I have a 760 credit score

Sharon

import · September 29, 2005, 10:27am

Re: Rehab Shell - Posted by Barry (GA)

Posted by Barry (GA) on September 29, 2005 at 10:27:01:

Hi Sharon,

For deals like these I’d try the smaller local banks. We got a great deal on a construction loan to rehab a fire damaged house. They financed the purchase as well as the rehab costs and included the closing costs so it was a true no money down deal for us. There were no payments for 12 months and a good interest rate too. We just made draws against the funds as needed.

Good investing,
Barry

import · September 28, 2005, 4:13pm

Re: Rehab Shell - Posted by michaela-ATL

Posted by michaela-ATL on September 28, 2005 at 16:13:33:

Sharon,

yes, in general HML would finance that. BUT, it very much depends on the After repair value. Typically, a HML will
finance up to 60-65% (there are exceptions, that will go up to 70%). TO finish a house, that is only a shell, can cost a lot of money. So, if your ARV is only 100k, then it wouldn’t be worth it.

Also, since this is more than a quick cosmetic fix, a lot of HML would not want to lend to someone, that doesn’t have experience with major rehab.

So, if you know what you’re doing, if the numbers are there and with your great credit score you shouldn’t have any problems finding the funding.

Michaela