Arranging finances for investment property

Arranging finances for investment property

Sheboygan, WI · Member since 2025 · 5 posts · 3 votes

Good morning,

I have an LLC in good standing and I am in talks with the legal seller of a property that I would like to buy through my LLC as a rental/air bnb. The property is not on the market yet as they are giving me an opportunity to purchase prior to that occurring.

I can arrange financing though will also require a private investor to support with the 4 points.

Property: Sheboygan, WI

Purchase: $285,000

Condition: Excellent

Estimated value: Hasn't had valuation, though I'd say it could be around $30,000 more than the sale price of $285,000

Hard-money loan: $285,000

Interest rate: %

Points: 4%

Cash needed: $

Investor contribution: $14,000 - $16,000

Timeline: 1 month

I have seen the property, it does not require any work or repairs. It is a 3 bed though a 4th bedroom could be set up downstairs. The property has a bath room and shower room.

Seller is hoping to complete by October due to probate settlements.

If anyone has advise or is interested in supporting with financing do get in contact.

Many thanks,

Aimee

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  • Scott AlfanoBusiness Member
    Lender · Seattle, WA · Member since 2013 · 64 posts · 20 votes
    2w

    Hi Aimee - with the home in great condition and not needing any work, what is the plan to exit the hard money loan? That route would have a steep interest rate and paying the points that could be cash for a down payment on a different loan type.

    Signed and Funded - Scott Alfano
  • Tyler MccleanPro Member
    Investor · Nassau County, NY · Member since 2022 · 69 posts · 18 votes
    2w

    Hey Aimee sounds like you have a nice deal. Any specific reason you're doing hard money for this purchase if not needing construction? Have you spoken with a lender about doing a 30 yr fixed yet? 

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