How much give to make this deal work?
Good day all. I'm just curious what various lenders would be looking for in compensation and structure of this deal:
Purchase Price: $25,000
Rehab/Holding/selling costs: $30,000
ARV/Sale Price: $85,000
90 days for purchase/rehab/sale
**My questions below are coming from the scope of my view that a HML being a formal institution/group with a bunch of standard terms, processes, etc... and a Private Lender being someone with money, willing to loan it short term, without all kind of formalities(if that makes any sense)
So in a HML world, 65% of ARV would be right at $55,000... does anyone does this deal without requiring rehabber to have skin in the game? If so, what are typical POINTS and interest fees? Would HML require reserves? Basically would above deal be doable and how much would it cost?
In a private lender world(I mean less formal, less of a business type approach more of a guy/gal with lots of cash) If you could land a deal to get the $55,000 to buy and rehab, what would be a reasonable return/terms for the private lender to do this deal?
I'm trying to wrap my head around varying ideas/strategies etc, to move forward with in regard to deals that come up.
Thanks for any information/thoughts you can provide.