I need some advice please, on If I can get a Loan on a Property, that I need $30,000 to do Repairs/Renovations on ??
The Property when Repaired, should Appraise for around $125,000 - $130,000
The current Value of the Property is right at $35,000
My All-In costs will be around $16,000
I won't have enough $ to fix and Repair it , so I am looking for a way to get a Loan / Money to get it Repaired
Would a Bank or Lender likely lend me a HELOC type loan, based solely on the Equity that the Property will have in it ?
Thank you all for the help and input
Is this a property you already own, or is it a deal you are looking to purchase?
Can you clarify your numbers a little bit? Is $16k the purchase or rehab cost?
I think you can get a hard money loan on it, but it's going to be tough because it's such a low loan amount. Expect the fees/points to cost about $3,500 since that's the minimum fee most lenders would take. If you do have a HELOC or private money, that would be better/cheaper.
Hi Nighi Le ,
I am looking to purchase the property
The $16,000 would be all of my Upfront Costs ( Liens, Back Taxes, Lawyer fees and cash payment to the Owner/Heir of the Property )
I will need around $35,000 to repair and renovate the Property
My proplem is ........... I don't have the $ on hand , to pay for the repairs/renovation on it
a HML seems like my best and likely only Bet ?What Loan amount ( as a minimum ) do HML like to see / loan ?Thank you for all of your help
Jason DiClemente ,
what would be the reason that a HML would consider loaning to me n the first place ............ Would it solely be based on the amount of Equity ( After the $35,000 is spent on the Repairs ) that they would lend me the money?
So my Upfront/out of pocket cost will be right at $16,000 + $35,000 needed to repair/renovte it
Total cost = $50,000 ( rounded )
The ARV should come in at $125,000
So is that $75,000 worth of Equity in the Property, enough of a reason for them to feel comfortable in lending me the $35,000 " against " the Property ?
Thank you for all of your help
The HML will do it but require to be on title in 1st position.
It sounds like Purchase Price will be $16k, and rehab is $35k. Most lenders won't do loans under $50k, and the only lender I know of that can will require you to have at least 20% of the total costs (purchase + rehab) liquid in your bank account or $15k, whichever is greater.
You mentioned that you only need money for the repairs; does that mean that you are able to pay for the property up front with your own cash? If so, you can probably get a loan that covers most of the purchase and rehab costs.
Black Onyx Lending LLC gets its clients loans like this. Look us up on the web.
Dennis W. ,
" Be on the Title in 1st Position " .......... This mainly means that they will want to tecnically have the full rights to the property, in the case that something happens and they have to then " own " the property , with the Repairs still needing to be completed ?
Nighi Le ,
Yes sir , the $16,000 is what I have in Cash and what it will cost me to acquire the Property
I just need right around $35,000 to do all the Rehab and Repair work .
I wasn't sure what type of Loan I could get , that would Lend based on the situation .
What type of Loan would cover both the Purchase + the cost for Rehab ?
I'm hoping that the amount of Equity in the Property, will be enough for a Lender to Lend to me , on this Property ?
What would be the rates and the terms for a Loan from your company, given the forementioned situation ........ ( $16,000 paid in Cash by me on the Front end + $35,000 needed to do the Rehab )
Property's ARV to come in , right around $125,000
So , $75,000 in Equity ( estimated )