I have a potential flip opportunity that just fell into my lap that I am trying to creatively buy through private money or a hard money lender, the numbers are solid and are based on comps within 600 yds within +/- 200 sqft and within the past 6 months. Purchase price is 220000 arv is 280000 with very minimal work required (less than 10k) my issue here is upfront cash , the deals I have done in the past required less than 15 k and where between 135000-167000. Now I know its never good to try and bend over backwards to make a deal work but this is a great opportunity and I am very familiar with the area having lived in this city almost 10 years. Basically my question is, what would you all do to get this deal? I have again about 10 cash to play with and about 50k equity in my home. the hard money lenders I have approached have all told me minimum of about 40k down and I just cant make that happen on my own. any ideas? tips? connections to private money that can take my home equity as collateral. ?
thank you again BP forum
Assuming your numbers are correct there is between 12k and 14k profit in this deal. I am assuming the commission is going to an agent, if you are getting 3% as listing agent then you can add another 8k to that, so between 20 to 24k. Sounds like a decent deal.
My suggestion to try to get this deal: Would the seller take 10k down and 1k per month until you flip the property? You can tell him you will give him a lot more if he waits 4 months while you do the flip.
Good luck and report back to see how it went.
IT is a bank owned deal. no negotiating that kind of deal. A wholesale brokerage has the rights to sell, hard money or cash only.
I'd pass. You don't need to put your life on the line for any deal. Whatever about getting yourself into hock with a HML for a deal, putting your personal home on the line is crossing a line you should think twice about doing. This is noyt life and death or going bail for a buddy, this is just business! Getting into personal debt for a business deal of any kind is almost a double negative. Maybe you might look for an owner financed or subject to deal, that needs $10k cash to get it rolling>? Even if you only get $10k back on the flip, that's double yer money?
Best of luck with it.
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