Investor · Fayetteville, AR · Member since 2020 · 27 posts · 12 votes
I have several potential flips going and every local bank I speak to wants around 80% of the ARV of the property or 90% of the cost, whichever is lower.
My issue is that the 90% loan to cost is always the lower of the two, which means they will require significant investment of money on my part, which I dont want.
Is there any way around this? Most of these flips have good profit margins, they arent particular risky deals but I want to limit my investment of money to a minimum.
@Cameron Johnson Keep shopping around. I did a smaller rehab some time ago, $50k purchase and $30k rehab. Went to a small local bank that offered to loan 80% of ARV, and we did the appraisal in advance which came back at $110k. So they would fund $88k toward purchase + rehab. They required 20% down on the purchase ($10k), so their loan covered all rehab.