Funding a Rehab on an Already Owned Property
Hello,
We own a SFH in NE Denver (3/1 & 965 sq ft) and are looking to renovate and sell. Currently we owe $240, it is worth about $400-425k. Can anyone recommend individuals, lenders, or strategies we can use to fund this? Looking for about $60k.
Thank you!
-SR
Most Popular Reply
That's actually a pretty common loan that we see a lot. You'll first want to gather up a few things. First, is this in your name or in the name of an entity like an LLC or S-Corp? When did you purchase the property? You'll need the following: 1) A "Scope of Work" that details the work to be done and the cost (your GC should be able to provide that to you, 2) Several documents from your entity a) The Articles of Organization, b) the EIN Number, c) the Operating Agreement/ByLaws, 3) The Driver's License of each owner, 4) You might want to prepare a personal financial statement for each owner. 5) 2-3 months of bank statements (unredacted included all pages), & 6) The most recent mortgage statement you have. The lender can pull your tax bill, but they will likely have "builder's risk" insurance requirements. Finally, have you done a Comparative Market Analysis (CMA) to justify your ARV (As Repaired Value). With those items, you'll be ready to chat with a lender like us to get that done. It's a relatively simply process, but I would start gathering that info as any legit lender is going to need that stuff at some point.