I have a Question when it comes to purchasing distressed or properties in need of rehab.
We currently own a 5 unit in Schenectady,NY. The property is free and clear. Originally, our first approach was to refinance the property and use the funds to purchase another. Refinancing seem to be the way to go.
My question is: Is hard money or private lenders the only way to purchase properties in need of some rehab or are there any institutions that will lend to ARV with conventional rates?
We want to buy and hold but the area we are interested in the properties are in need of some repairs.
Thank you all in advance.
Conventional lenders don't lend against ARV, they lend against current value. My company has a 100% financing model where the passive investor invests no more than 5% of the purchase price and receives a cash-on-cash ROI of at least 25% over a 6-month period.
Thank you for your response. can you send me some information on this program. You must be talking about hard money. Is this the only way to get financing for flipping or buying properties in need of repairs? Thanks
Crowdfinancing is a new market that also helps fund fix-and-flip properties. There is a specific forum on this site dedicated to it. I'd also be happy to discuss with you.