Hard Money Rehab Loans?
Hi, I'm wondering if it's difficult to find hard money Rehab Loans.
I was originally going to do hard money Fix n Flip, but ended up buying a property in cash from the local land bank just over a year ago. Now that I'm ready to get moving with construction, I realize that some of the hard money places do Fix n Flip only, but not the rehab. The property was vacant, so it's existing value is tops 50k, but it needs say 120k worth of construction. ARV should be 200k+. I have good credit, but not money in the bank (personally) which is why I was looking for hard money, not something based on my personal statement.
Any thoughts on where to look for a loan that will work without expectation that I still need to close? The last company said they'd consider it a refinance... sigh.
I was originally going to do hard money Fix n Flip, but ended up buying a property in cash from the local land bank just over a year ago. Now that I'm ready to get moving with construction, I realize that some of the hard money places do Fix n Flip only, but not the rehab. The property was vacant, so it's existing value is tops 50k, but it needs say 120k worth of construction. ARV should be 200k+. I have good credit, but not money in the bank (personally) which is why I was looking for hard money, not something based on my personal statement.
Any thoughts on where to look for a loan that will work without expectation that I still need to close? The last company said they'd consider it a refinance... sigh.
Most Popular Reply
From a lenders perspective the issues that you might face on this one are the following
The rehab cost is more than double the purchase price/current value
120k sounds like it is a full gut rehab (or heavy rehab job, ) Some lenders want to see experience as an investor in properties in need of rehab when the rehab budget is over 100k
Some lenders have an initial disbursement minimum - which at a 50k as is value might eliminate some lenders
Since you purchased the property using cash you may be able to pull off a delayed purchase depending on how long you held the property.
I will send you a DM
The rehab cost is more than double the purchase price/current value
120k sounds like it is a full gut rehab (or heavy rehab job, ) Some lenders want to see experience as an investor in properties in need of rehab when the rehab budget is over 100k
Some lenders have an initial disbursement minimum - which at a 50k as is value might eliminate some lenders
Since you purchased the property using cash you may be able to pull off a delayed purchase depending on how long you held the property.
I will send you a DM