No Experience Fix and Flip Financing
Looking for 90% acquisition cost which will be about 50% ARV. No need for rehab financing. The guarantor on this loan has no previous experience however the person running rehab has 10-12 flips experience in the past 24 months but will not appear as a guarantor because of credit. Anyone offering this? PA property. Thanks.
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This would have very tight margins. You are buying for 107k, ARV is 195k.
195k * 70% = 136,500.
That's your max loan amount and if the purchase is 107k, then you have about 30k - 40k max in room for rehab. 30k - 40k is not enough for everything. Can't remodel kitchen, baths, put in new floors, new drywall, new paint, and update mechanicals for 30 - 40k.
I'd really take a look at the budget for the house.