Funding 100% of Purchase and Rehab Cost
To clarify a previous posting, are there any hard money or private lenders that would typically fund 100% of both the purchase and rehab cost on a SFR property?
An example to clarify..
Say the ARV on a fixer SFR property is $200,000. Seller agrees to sell it for $70,000 and the estimated repairs = $30,000. So both the total cost of both purchasing and rehabbing the property = $100,000 or 50% of the ARV.
Although most HML advertise they will fund up to 65% of ARV or higher, which in this case would be $130,000; some will actually only offer to fund 80% of both the purchase and repair cost (in this case $80,000) and require 20% or $20,000 down at closing from the rehabber. This would then mean the HML is only offering to fund 40% of ARV not the 65%.
Are there HMLs or private lenders that will fund 100% of both the purchase and repair cost of $100,000, which is below the ARV of $130,000?