Rental Property Investor · Bayonne, NJ · Member since 2021 · 22 posts · 5 votes
Hello all,
Purchase price: 200,000
Rehab: 50,000
All in: 250,000
ARV: 450,000
Here is a hypothetical example of a property, my question is if I need 250K ( 200,000 purchase price) ( 50,000) Rehab and I dont have much capital and I go to a lender and he tells me He can only loan me 90% of amount needed. Therefore 90% of 250,000 is 225,000. This means I need to put up 25,000 from my own pocket. So my question is, Can the lender loan the amount of the purchase price and the rehab budget combined? Since i need 200,000 to purchase the property and 50,000 to rehab it, does the hard money lender factor the rehab budget in the loan amount?
Investor · Ontario · Member since 2015 · 486 posts · 250 votes
5y
Hey @Tarek Emam Yes some HML lenders will give you up to a 90% LTV on the purchase. Some will also lend you up to 100% of your renovation budget on a fix and flip. Hope this helps.