Came across a situation where someone needs out of their loan, and is willing for us to take over the loan/payments.
However there is about 150k worth of rehab to do because of mold. I can get specifics if you need them, but mainly I’m curious how to finance. I’m debating hard money for rehab then refinancing afterwards but was wondering if anyone else had any ideas.
@Lori Bouska what is your goal here? Are you going to live there? Flip it for a profit? You are going to be running into a lot of issues here if you need any type of loan for the rehab.
The property is titled in someone else's name with a mortgage tied to them. They have full legal rights to the property. No lender: bank, private, hard money, will lend YOU money on secured by an asset you don't own.
Why can't you just buy the condo from the seller with a rehab loan? This would be the cleanest way, and for me, the only way I would tackle this large of a renovation.
Beyond that, mold in a condo is a big issue. Is there a known water source? Is the leak within the unit you would be rehabbing or is it stemming from another unit or a roof issue, that isn't getting fixed? All in, just on the surface, this type of deal sounds very risky for a multitude of reasons.
yea find out what you want your exit strategy to be first......it could be Subject To or it could be hard money....but it depends on what you want to do with it