I'm closing on a deal tomorrow (finally!!!), but have this second deal on the table.
The seller and I agreed verbally on a $39,500 finance offer...where I put in 50% down of purchase price (so 20K), have the bank back me with the rest + whatever the rehab cost will be. I'm speculating another 40K-50K so you're looking at 90-100K (adding buffers).
Will the lender/bank cut a check for 20K to the seller at closing? Like is there even a such thing? I've engaged my lender, she did my intake (something along those lines are possible), and I'm still waiting. However, wanted to ensure I'm not wasting his time or mine.
Any input is appreciated.
Since the total ARV is over $50K, you MAY get a hard money lender to do it. It would probably have to be a local hard money lender who has some flexibility.
It would be a rare bird, but ......MAYBE.
@Cara Lonsdale the ARV on the property is at around 120K. The rehab cost is about 50K
@Cara Lonsdale Quite honestly, the ARV may be even north of 120K. I'm saying 120K because I'm closing on a similar property with similar characteristics, not even updated and it appraised for 118K. I'm assuming (and I hate assuming), once I make it pretty lol it'll appraise for a bit higher.
The one I'm describing above is almost a mirror image, duplex just needs more rehab work. Electrical, plumbing (the main items), plus cosmetic work painting and some new appliances.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.