Updated about 15 years ago on . Most recent reply
Can this work?
Buyer is interested in purchasing a home for $80k with approx. $50k in repairs. The after repair value is estimated at $214k based on comparables pulled by realtor.
Can the buyer take the executed contract to a hard money lender for the purchase and repairs, considering the total acquistion cost ($130k) is roughly 60% LTV?
What are the possible problems?
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#3 Real Estate Deal Analysis & Advice Contributor
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#3 Real Estate Deal Analysis & Advice Contributor
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What's the buyer's exit strategy for the hard money loan?
What's the buyer's exit strategy for the property?
There will be points on the loan, typically 3-5. Rates are 12-15%, monthly interest only payment. Terms typically not more than a year.
May have a tough time finding someone to do the loan if they're planning on living there.