Real Estate Investor · Miami, FL · Member since 2016 · 22 posts · 8 votes
Hi,
I got my first rehab deal under contract. I'm buying the property cash, and need to finance the rehab cost.
I wanted to finance the whole deal, but I don't have a track record. Would private lenders consider me as I will be paying cash for the property, and just need the rehab cost without a track record?
I do have experience. I was a project manager for a GC and a general manager for a real estate investing company.
Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
9y
@Eric Percival, how much rehab are you needing. If the house is worth it they should loan on the house as a first lender as you are paying cash and don't have a mortgage or other liens.
Lender · Western Springs, IL · Member since 2015 · 472 posts · 245 votes
9y
@Eric Percival Is the home in decent shape? Anything major wrong - structural or safety-wise? You may be able to get a loan on it now. How much did you buy it for?
Real Estate Investor · Miami, FL · Member since 2016 · 22 posts · 8 votes
9y
Purchased price $55,100.
Rehab Cost: $50,000
ARV: 160,000
The property is consider an unsafe structure by the city, and has violation due to illegal additions ( one bedroom, and a separate efficiency). There's a lot of rehab that needs to be done. I will submit plans to the city showing the corrections, I would hire a GC just to pull permits, and project manage the rehab myself. I can probably do the rehab for $35,000
Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
9y
With your track record as a contractor and managing projects you shouldn't have a hard time getting a loan to do the work from a private investor.
It will be tough from a bank I think if the house is in that bad of shape.
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
9y
@eric percival
I don't see this as a viable project for a couple of reasons:
From the sounds of it ("unsafe structure"), you've got a more extensive renovation (foundation problems maybe) than many private lenders will jump into.
Your cost to renovation ratio is way high (100%)
Good luck though. Sounds like you have a good handle on what needs to be done.