I have someone willing to do JV and our agreement I he purchase property and I fund rehab and we split profits down the middle for example 550k purchase 100-150k rehab and ARV 840-950k, so I'm looking for lenders that will just lend for rehab? And also does this sound like a solid JV of course we will put everything in writing and escrow
@Victor King It sounds like you're looking for a construction loan, but I guess I'm a touch confused on this one. If you're getting a lender to cover rehab costs, what are you funding? Is there a reason your partner wouldn't just get a construction loan himself?
And you'll be hard pressed to get a construction loan without proof that you own the asset. It may need to go into your partner's name anyway.
@Dave Spooner still working out the kinks but ideally I would be put on title so that I can obtain a loan
Hey @Victor King yes this is possible with some private lenders. I believe you may need to take out a certain loan amount as they do have minimums. Much easier for you to simply get a open private mortage with no pre payment penalty. These lenders will allow you to put less down on the property and finance up to 100% of your renovation costs. When you are done the project simply refi into a traditional mortgage.
Thank you sir, I will look into that
You can always borrow against the home. If you have owned it for less that 90 days it would be considered a purchase and you get the same rates. 1 year bridge then refi it into a 30 year.
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