Cash needed to close on a great deal
I have found a property that has an ARV of around $200k. Purchase price of $80k and about $40k in rehab.
I am looking to use a hard money lender who will allow up to 75% ARV and 100% of the repairs.
I am curious how the cash to close on a deal like this will work considering that 75% of $200k is $150k and i only need about $120k for acquisition and repairs on the property.
Will some hard money lenders cover the whole cost of purchase and rehab where i am only covering a few thousand in closing costs?
will they only cover a certain percentage of the purchase price and closing costs, so i will need to have some more skin in the game?
also, when refinancing the property to a conventional loan, will i then be able to pull out $150k, pay back hard money of $120k and walk away with some extra cash for the next deal?