Factoring Hard Money Question
Hello,
I am considering making an offer on a property. The ARV is $240K, rehab estimates have come in at $25K. Therefore I would offer 70% ARV minus $25K, or $145K.
Here is the question, do I also want to factor the hard money interest into my offer as well?
My lendor asks that I pay closing costs and pay 14% and I would refianance out in 1 year. 14% on 145K is approx. $20K.
From a standard prospective, should I offer $145K-$20 = $125K? Or would I still offer $145K and refinance $165K?
Looking to understand the standard practice.