Hey BP Community,
Can Hard Money Lenders be Utilized to successfully do a Wholetail strategy? If not what creative ways do you think would be suitable to successfully carryout a Wholetail opportunity?
Rehab = $1,000-$5,000 (Enough to be presetable)
List/Sell on MLS for $125,000
Thank You all again!
Most hard money lenders will do a quick review to see if a deal really is a deal and for the most part you need to be buying 60-75% of the ARV so If it is actually worth $125,000, you should be getting it for $81,250.00 less repairs, so if $5000 in repairs $76250.00. The reason for this are your actual costs as the property will end up selling twice, once when you buy it to fix it up and then again when you put it back on the market after fixing it up. As such you will have twice the closing costs. Most hard money loans are around 12% or more, plus the point costs so that subtracts from your profit as well, on the plus side the loan payments are interest only and with a Wholetail you should only have the loan for a month or two.