Kevin,
You are requsting funds for an investor to take second position and you have given no details of the current first position loan.
This is likely why you have not received any comments yet.
Thanks for your reply, the first lein position will be covered by financial lender and they will be covering aquisition costs ($103,000) & closing costs and I will be covering the 10% deposit required by my lender which brings the aquisition to $92,700,
The current property value assesssment is $188,700 and properties in the area are under deposit for $197K - $230K.
I have not had a title search performed on the property yet to see if there are any other lein holders currently on the property, I have not made it to the closing stage due to financing constraints.
Your biggest challenge here is that you're only offering 2nd position...most investors aren't going to consider this a safe investment from a collateral standpoint, so you're going to have to prove that the numbers are essentially fool-proof.
What is the ARV? What are the specific comps? Who holds the first position lien? For how much? How much of your own cash is invested? How long do you plan for the project to take?
These are the questions most investors will ask before even considering a 2nd position loan...
Thanks for your reply, I am new to prividing all necessary information when it comes to my deals using this platform, my deal information is as follows:
I have the following property under contract:
170 London Drive, Hamden
1950 Cape
4/1, 1469 sq ft.
Purchase Price: $103,000
10% Deposit, $10,300
Purchase Price aft Dep: $92,700
Rehab Costs: $30,000
Appraisal Value: $188,700
Properties in Area Under Contract: $197K - $230K
Basic Rehab Plan:
Install New Roof, Siding (Existing Alum), Windows, Kitchen, New bath on 2nd floor, Has new HVAC/Water Heater and new plumbing run to existing bathroom that were installed w/o permit that need to be addressed, New 100 amp service / relocate existing meter to outside of house, Sm Deck on Back of house, New columns & Railings on front porch, Re-do existing HD Floors, install new molding, paint, minor landscaping.
I have a firm that I am working with that will cover acquisition & closing costs and would be in first lien position, initially I was going to be using my primary residence to help secure Rehab Costs but due to slow or no sales and 2 foreclosures in my neighborhood my property value dropped a great deal making it un useable for collateral.
I just found all this information out last week when submitting for financing and my contract date runs out by the end of next, so now I am scrambling for a cash partner that would be willing to work with me on this one and build a working relationship moving forward for other projects.
Install New Roof, Siding (Existing Alum), Windows, Kitchen, New bath on 2nd floor, Has new HVAC/Water Heater and new plumbing run to existing bathroom that were installed w/o permit that need to be addressed, New 100 amp service / relocate existing meter to outside of house, Sm Deck on Back of house, New columns & Railings on front porch, Re-do existing HD Floors, install new molding, paint, minor landscaping.
Are you sure your rehab estimate is accurate? Just replacing the roof and all the siding could easily eat up 1/3 to 1/2 of that budget. New kitchen, bath and windows could easily eat up half. The HVAC, Plumbing and Electric could easily eat up 1/3 to 1/2 of that. Deck, floors, paint, trim, landscaping, etc could easily eat up 1/2 of that.
So, you could easily be over-budget if you haven't budgeted very carefully and found some VERY economical contractors.
I have spent the latter part of the last two weeks working on all my bids, and have a lot of my contractors willing to work with me on all the work that needs to be done by letting me work with them to keep labor costs down, also I will picking up some of these costs with business credit accounts that I have.
I have spent the latter part of the last two weeks working on all my bids, and have a lot of my contractors willing to work with me on all the work that needs to be done by letting me work with them to keep labor costs down, also I will picking up some of these costs with business credit accounts that I have.
Awesome...just making sure that this rehab number was based on contractor bids and not just an self-generated estimate. It sounded low to me -- based on my area, my contractors and my experience, which doesn't mean much -- so if you have contractor bids, then it sounds like you're in good shape!
Ya believe me I do not want to come up short doing this, in doing this i am trying to create some long standing relationships with my contractors and up to now I have hooked up with a few good ones.
Some of the other bids I got in are from Friends of mine that are contractors helping me to get started and in return I will throw work their was as I go along from here.
I have to do what ever is necessary to get my fisrt filp completed and done under budget so I can make that almighty dollar to put into my next one, if I have to get nasty to accomplish this then so be it "Bring it!"