Ok I just put a house under contract for 30K and ARV is about 80K with repairs running around 20K. I may try and assign to another investor for 3 or 4K but i would really like to rehab this one and make some huge profits as i work in the construction field and can do alot of the work myself. My problem is after a divorce and some medical bills my credit has taken a big hit arond the 540 mark (ouch) is there a way i can get a bank or any other place to finance this deal for me so i can get my credit situation straight and not have to worry so much next time? Any info would help, thanks
Not sure you're definition of "huge", but the maximum profit here is probably only about 12K or so. That's after you purchase, repair, buy costs, holding costs, and sell costs. If you do the work yourself, and do the repairs for 10K rather than 20K, then you've really made 10K doing remodelling and not real estate investing. Nothing wrong with that, you just have to realize the true source of your income.
You may be able to find hard money for this. Its a pretty small deal, though. That's going to run you something like four points and 15% interest with a six month term. But, they will loan you something like 70% of the ARV, and won't worry too much about your credit score. You may be able to find some of these are your local REIA. Try updating you profile so it shows a location, and then maybe someone can direct you to a specific source.
Jon - is correct your best bet is going to be a local rei club. Local hard money is going to be your only shot to get it done with little to no money out of pocket. Good luck!
you might also try
investwell.com
hard-money-lenders.com
rehablist.com
Investwell won't work for two reasons---FICO requirement of 575 & 2-5% down payment required depending on credit score...
The other reference contains primarily LTV based lenders (the OP is seeking ARV solutions)---and the last reference is to another forum (which might be against forum rules for posting it).
Regards,
Scott Miller
Originally posted by "The_Specialist":
Jon - is correct your best bet is going to be a local rei club. Local hard money is going to be your only shot to get it done with little to no money out of pocket. Good luck!
you might also try
investwell.com
hard-money-lenders.com
rehablist.com
Scott- I made my expert opinion- no money or little down - look locally, I threw the others in because people want a second or third choice. Thats the way a specialist handles business, just like the 30 mill dollar deal closing tomoorrow that came to me because I am the hard money specialist!!
• Minimum credit score of 575.
• No foreclosures on credit report.
• No bankruptcy (discharged or dismissed in the last 12 months).
• Origination points will be rolled into loans and will not be calculated as part of the LTV.
• 6 month term [/b]
Apparently you are operating from the old rules (550 FICO with exceptions made on a case-by-case basis), but the investor changed their guidelines several months ago.
Best if the mortgage brokers do not conduct pissing matches in public. Both lose creditability with the potential clients.
If there is a factual error just post the specific correction without trying to put down the individual. Or assume that you will have fewer clients from the BP community.