Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

10
Posts
0
Votes
Jarred Watley
  • Houston, TX
0
Votes |
10
Posts

help with hard money leading on flip numbers

Jarred Watley
  • Houston, TX
Posted
Hello! BP family need help on flip deal numbers. I'm going through a hard money lender. The purchase price of the property is at 55,000$.Cost of repairs Max 25,000(I always go with higher numbers could go way lower) ARV through the hard money lender is at 89,000$ ( consulted with a real estate agent and his broker they came up with 100- 110,000$ arv) hard money lender wants $20,300 for closing cost. Thoughts on deal ??

Most Popular Reply

User Stats

303
Posts
131
Votes
Sean Blomquist
  • Lender
  • Blaine, MN
131
Votes |
303
Posts
Sean Blomquist
  • Lender
  • Blaine, MN
Replied

@Jarred Watley based on the HML's ARV, this isn't a good deal at all. If you are looking at 80K to buy and fix, with an end value of 89K, you won't make any money. In fact, you would lose money for sure.

If the ARV truly is 110K, then the deal isn't bad. If the ARV is 100K, it is too tight in my opinion. Anything at 80%+ (purchase + repairs / ARV) isn't going to make you money using HML.

The bigger question should be how did the HML come up with only 89K and your other adviser's are coming up with something much higher?

Good luck

  • Sean Blomquist
  • Loading replies...