Using private money to fund rehab only
Hi biggerpockets family,
I'm in the final stage of acquiring a house in Huntington Beach. It is a few blocks from the westminster mall and 2 miles from the beach and in a nice neighborhood.
Asking is $530k and is being sold by family that acquired the home from another member. So they dont want to deal with it. My first impressions of the house is it needs some TLC $45k- $60k. The comps in the area range from $650k- $720k. With 2 homes within a few blocks that sold for $710k within the last month. I am 80% sure I will be able to get the house for $450k and have the funds to get that.
Asking- $530k
Rehab- $60k
ARV-$690k
Purchase price- $450k
My questions:
How does the deal look?
I want to use a private lender/friend to fund the rehab, how much of the profit do they deserve?