this is my very first post here at bp so please stay with me. Let me try to explain my situation. i have been studying investing here at bp for along time and i have made the choice that fear will not stop me anymore. anyways i have found a house here in las vegas that i would like to buy and flip, its a hud reo. how do you get financing structred when you have to buy it from the bank. the numbers work out at: purchase price $125000
rehab cost $25000
my question is i am having a very difficult time with the arv. i have not used the mls yet to verify. my numbers are from what i can find homes sold in the area off the internet and i have looked up each house individually for actuall sold numbers and dates. i still do not feel very comfortable with my numbers i will speak to a realtor this week about comps and i would like to be able to verif what i am being told.
next how do i present this to a private money lender since i wont have it under contract untill i get the money from a private lender. or am i doing this all wrong suggestions appreciated.
welcome to the site.
I would consult a Realtor have them provide comps and then work with you as your buyers agent later to submit the offer.
Take the comps along with your repair bid to your private lender and if he likes the deal then he should be able to provide a POF or pre approval letter for you to present with your offer to buy,
The advice from James above is excellent. Regarding your question of "
how do you get financing structured when you have to buy it from the bank?"- also look at small local banks or commercial lending departments. I've bought a few HUD properties and as long as the numbers were good, I was able to obtain both purchase + rehab financing in one closing. The rates may be better than private lending as well. I got 5.25%. Most private lenders would probably want in the 8-10% range.
@Levon Williams I hate to tell you this but I really doubt you will be able to purchase a Las Vegas property with true ARV of $209,000 for $125,000 from HUD. My guess is that either the ARV is much lower or that this is the opening price in an auction and it will end up selling for a much higher price. Good luck!
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