I need a private lender for a a house that I am buying to hold as rental. Details below
Purchase price. 47k
I would need funding for 47+38= 85k. That is 68% of ARV . The 38k rehab can be release in stages as rehab progresses,
I would refi to conventional loan in 3-8 months . We can talk if the funding can be done for longer term.
I have the house under contract now.
Location : San Antonio, TX
Let me know if anybody need more details.
You'd likely be find raising money to be easier if you can bring at least some of the cash to the deal yourself. The big question is, if you can't bring any cash to the deal, how will you be able to refi in 3-8 months without a downpayment?
@J Scott Thanks Scott for replying.
I can always bring money to the table but would like it to be minimal . I usually do double close with this kind of deal. First I would close it with Hard Money Lender with 70% (including rehab and closing cost). Then the 2nd closing with 75% refi where the 5% difference would absorb the refi closing cost. If I do it this way, it would be almost zero Cash out of pocket.
However if a private lender requires me to bring money to the table to ensure there is skin in the game, i would consider it..
Originally posted by @James Kandasamy:
Then the 2nd closing with 75% refi where the 5% difference would absorb the refi closing cost. If I do it this way, it would be almost zero Cash out of pocket.
You mentioned a conventional refi. I'm under the impression that a conventional refi won't let you get away with a new appraisal and nothing out of pocket in less than 6 or 12 months. Have you actually done this before in less than 6 months?
@J Scott of course i have done in before. In fact in the past few deals i actually got a cash back from the refi. All done in 1-4 months after the house is purchased, rehabbed and leased. This is all Fannie Mae conventional refi.
That is great @James Kandasamy . I was under the same understanding as J Scott . Would you be willing to share the name of your lender for the conventional financing? I am in San Antonio also.
Thank you in advance,
Sure i can share it. Will connect via PM.
Anyway, i don't think its a special lender thing.
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