Updated over 10 years ago on . Most recent reply
Structuring a small HML or PML??
I am closing on a foreclosure in CA this week that I bought for cash for $75k. After reno it will list for about $130k. Now (of course) I found another foreclosure that is a great deal for $50k that I don't want to miss out on. After reno it will also be worth $130k.
I would like to borrow $50k for about 6-8 months because I can't really work on property two until I finish property one (small crew and funds). I guess a flip loan won't work if I'm locked into a 3 month loan. Are 6 month flip loans available? Maybe a one year with 6 month minimum? I could payoff a loan on the second property in full after the first one closes.
What do you suggest presenting to a lender? Putting up either one or both properties? At what percentage loan value? Can I realistically borrow as much as $50k on the first property? I can get 10% money with 2-3 points up front. I'd rather not pay points. Suggestion on how to structure this? Thanks in advance!