1. Deal Analysis - 2. Financing
First things first, how does this deal look?
Fix & Flip not buy and hold.
Listed for $279,900 which is clearly a retail price for the neighborhood. Max. ARV would be $285,000 depending on the upgrades made. Believe it or not, but the listing agent is lobbying the bank to accept a lower price because of the condition. It is not bank owned yet and would be a negotiated short sale. The owner has left and completely trashed the place.
Plan would be to offer $185,000 and put $30,000 into it mostly cosmetic. The house is only 7 years old.
- All new carpet, and refinish hardwood floors
- Touch up nicks and holes in the walls and ceilings
- Paint the entire interior
- all new light fixtures
- Landscaping
Much of the work I could and would do myself except for the flooring and painting. I can elaborate more on the condition if need be, just let me know. To many details to discuss in this quick post. I have some skin I can put in the game, but not much.
Second thing is financing. My thought is that I am going to lose this one because I don't have a team of hard money lenders waiting to finance my deals and someone that does will close in on it quickly. If this deal either doesn't look good or does get away from me I don't want it to happen on the next one. Perhaps someone could fill me in on the current cost of hard money. It would be ideal for me to find someone in the Indianapolis area but for discussion purposes you could be anywhere. From what I see here people are supplying money across country.
- Please advise on this deal.
- Ask more questions if you need to, I am sure I left a ton of valuable information out.
- Help set me up for future deals so I can react quickly.
- Any and all financing options are on the table; equity partner, private lender, bank financing.
Thanks,