Financing a flip in the Bay Area
Hello BP!
My agent has contacted me about an off market deal in Santa Clara and it falls under the 'Cupertino school district' and located 5-10 minutes away from Apple's new campus. The cons of the property is that its located on a busy highway.
Basic information:
ARV: 1.4 million
Comps in the area run from 1.4-1.5 million
Owner Asking Price: 1.2 million
Very minor rehab, the cabinets and kitchen are a bit old and worn out. But keep in mind that I did not have a formal inspection yet.
Estimated rehab cost: $50k
I have some basic questions on how to finance this deal and make it work. I am also going to call hard money leaders tomorrow as well. This is going to be my first flip if I could successfully lock down the property. I am wondering if people on biggerpockets can help me structure a deal that would work for this situation.
I understand that for first time flippers, hard money leaders in the Bay Area will only lend on 70% of the ARV. Which means that I will have to come up with about 300K for the down payment and rehab cost. Is it possible to secure another loan for the other 30% of the deal? If so, how? I am not sure how creative I can get with this financing.