Funding Conundrum:Help Wanted
So we have this friend that wants to unload a property for 40K, renovation costs are coming in at 56K. The CV is 98K and the ARV is around 122K. Because we are new investors, no one wants to lend on a rehab that costs more than the purchase with this close a margin. We are wrecking our brains (with the limited knowledge we have) on how to close this deal without bringing in other investors. The Hard Money Lender we are approved with is comfortable with a 90K purchase price, lending 75% LTV which will get us where we need to be in order to do the rehab in phases, because we can contribute ~5K/month to holding and rehab costs after the initial investment. What options do we have? We have an LLC but it is just on-paper at this point, can we use this to close the deal and draw down funds at a 90K purchase price? Maybe do seller-financing from the LLC? I am out of ideas here, any help would be most appreciated!