Updated over 3 years ago on . Most recent reply
Debunking the Renovation loan
Investment Info:
Small multi-family (2-4 units) fix & flip investment.
Purchase price: $465,000
Cash invested: $24,500
I utilized a renovation loan, with minimal money in and COC return that was exceptional.
What made you interested in investing in this type of deal?
I've been lending for almost 20 years, and have a passion for helping people invest and "add value" no better way than a renovation loan if done properly.
How did you find this deal and how did you negotiate it?
Fannie Mae foreclosed property
How did you finance this deal?
FHA 203k Renovation Loan
How did you add value to the deal?
Got zoning changed to go from 3 to 4 unit and gut rehabbed from the studs.
What was the outcome?
We lived for 3 years rent free and than made between $600k-700k when it was sold.
Lessons learned? Challenges?
Tons, I'm both an investor and a lender and this is one of many projects I've done. There are many challenges so having a great realtor and lender essential.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Cori Michael