First time...well, anything

3 Replies

Hello BiggerPockets community! Found a possible fix and flip REO in Middleburg, FL. Seems like it won't last. I know I'm probably way off as far as how I approach this, but any and all advice is well appreciated.. The SFR is just over 1,800 SqFt, 4/2, was modernized a bit by previous owner, and I am pretty certain it will be valued between 160k-165k ARV. Asking price from the bank is 114k and I'd like to pop an offer on it after I see the interior (I drove by and scoped out the exterior, using my previous skills as a licensed appraiser). Any advice on finding a quick hard money lender that does 70% ARV loans or whatnot? Or partners? I've never bought or sold, and do not have money down. My skills help me find properties, I have data and i'm just eager to jump right in.

Thank you in advance for reading this...

Michael Cassidy

@Michael Cassidy

Welcome to the site! Sounds like you have a significant down payment/ funds available. I would encourage you to look at getting an in house loan from a local Bank. The can offer much better terms than hard money lender. I have done this 2 times now and can get interest only for 6 months that then rolls into a 15 year, ARM at 5.5%. These banks have never had issues loaning on the REO's that we buy. (even though they are in horrible condition)

The problem is that it takes 3-4 weeks to close, but if there are no other offers then it can work great. 

Also, if you get stuck in the house,and cannot sell it, you have a decent loan to sit on. (unlike hard money)

@Marcia Maynard that's for the note Marcia.. @Michael Cassidy plenty of HML in FLA>

I would suggest getting pre approved before you get wrapped up in shopping.

Just like retail buyers first thing they do is get their pre approval letter from their lender then they go shopping.. Most realtors ( at least one's that value their time) will require it of a buyer before they put time into them.. they want to make certain that the buyer can perform.

So that's what I would do is get with a local HML get pre approved so when your deal comes up its wham all done in a day... to get your offer seriously considered you will need this up front and or copy of a checking account in your name with the amount your willing to pay in said account.. that is your competition on distressed assets.