Have fix & flip property. Need funding.

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Have fix & flip property. Need funding.

Investor · Tampa, FL · Member since 2015 · 63 posts · 59 votes

I have a property under contract to fix & flip. 2840 Ripley Ave, Jacksonville, FL ARV is about $150,000 rehab about $25,000, purchase price of $87,500. Seeking private or hard money for funding.

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Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y

You need to look carefully at this deal, if you are using hard money.

87500 buy 

25000 reno  Did you get this number from a reliable contractor?

112500 sub total 

150000 - I am not sure about your comp! 

37500 net 

Hard money 2 points funding, they may charge you to record the loan. 1% a month interest

It will take you 3-6 months to do the flip 

112500*.02 =  2250 funding 

3000 -6000 interest 

Hard money costs 5250 -8250

Will you sell it yourself or on MLS? If you use MLS it is going to cost 6% = 9000

There are other closing fees you will pay on both sides of the deal.

I would be cautious, if something unforeseen goes wrong, you will find yourself under water.

If you want to PM I would be happy to walk through this deal with you.

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  • Reginald TrussPro Member
    Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
    7y

    Doug, send me your email address so I can send you some info, and I will also reveal who I represent.  Hope to hear from you.

    Reggie Truss

  • Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    You need to look carefully at this deal, if you are using hard money.

    87500 buy 

    25000 reno  Did you get this number from a reliable contractor?

    112500 sub total 

    150000 - I am not sure about your comp! 

    37500 net 

    Hard money 2 points funding, they may charge you to record the loan. 1% a month interest

    It will take you 3-6 months to do the flip 

    112500*.02 =  2250 funding 

    3000 -6000 interest 

    Hard money costs 5250 -8250

    Will you sell it yourself or on MLS? If you use MLS it is going to cost 6% = 9000

    There are other closing fees you will pay on both sides of the deal.

    I would be cautious, if something unforeseen goes wrong, you will find yourself under water.

    If you want to PM I would be happy to walk through this deal with you.

  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    7y

    Lesley is correct:) As-is, you are at 75% of ARV, assuming the property will appraise at $150k. You really should be at 65% of ARV for the numbers to truly work and to make a decent profit.

    Find a deal at 65% of ARV, and we'll do the project at 100% of purchase and rehab:)

  • Montrell BrownPro Member
    Lender · St Louis, MO · Member since 2018 · 143 posts · 16 votes
    7y

    Hey Doug,

    Yes you are a little tight on the numbers, but if you really wanna close this one, I can do 90%LTC not to exceed 70%LTV. You'll end up bringing whatever is over that to closing. We'll be doing a subject-to appraisal which can help, sometimes, in scenarios like yours, if the improvements are nice enough to max out the comps.

    p23finance.com/get-started

  • Lender · Miami, FL · Member since 2018 · 142 posts · 10 votes
    7y

    Doug:

    Cash Wizard Capital would love to provide the funding you need for your fix-&-flip.

    Please call or text me at (305) 607-2104, or e-mail me at [email protected]

    I’d appreciate the documentation you have on your deal via e-mail.

    Regards.

  • Rental Property Investor | Realtor · Jacksonville FL | Savannah Ga |Raleigh NC · Member since 2017 · 467 posts · 161 votes
    7y

    consider to wholesale that.....or lease to own as-is, ..let tenant do the rehab...

    concerned of your arv, +1960;s 25k, rehab.. margin profit w/ hard $$ tight, possible you're at .84 situation...

  • Lender · Miami, FL · Member since 2018 · 142 posts · 10 votes
    7y

    Doug:

    Cash Wizard Capital would love to provide the funding you need for your SFR fix-&-flip.

    Please call or text me at (305) 607-2104, or e-mail me at [email protected]

    I’d appreciate the documentation you have on your deal via e-mail.

    Regards.

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