using private money to flip a property
good afternoon investors. I need advice from some sharp minds. Here is my situation.
I recently partnered in with someone where we going to do a flip on a bank owned foreclosure property. We put a bid in at 63,500 and won the bid. The house was listed on the m l s for 70,000. we split the earnest deposit of 1000.00. he paid 500 and I paid 500.
He was going through a private money company for the funding, everything was going smoothly we were set to close in a week. we had a appraisal done on the property and it came back after arv 125,000. and it was listed for 70,000. I had three contractors say they could do the rehab on it for 8500.00 which was great. the house only needed new carpet in the bedrooms and I was going to put laminate down in the living room and dining room. paint the interior of the house, new kitchen window, new vinyl kitchen floor put down, replace 3 4 foot pipes that they stole which was a blessing because they could have taken a lot more but they didn't. also mud spackle and replace the sheet rock in one of the bed rooms. all three contractors said they could do it for he same price and I found a house that didn't need much work. A week before closing I get the email from my partner that was sent to him from the lending company that because the appraisal came back lower than expected, now we have to come to the table with forty five hundred more dollars. where as before they said we only needed 2,000. to close. the realtor showed the comps coming in at 135 to 140.000. so we didn't have the extra cash so we lost our earnest deposit and money wasted on the appraisal. I have no money to waste. My question is will a different lender such as a hard money lender look differently at this as being a good deal and will they finance 100 percent of the deal. I know most hard money guys only do 65 or 70 percent of the arv. As I said I have little money because my job closed down after 20 years of service. Can someone tell me if this is a good deal to flip because I think it is. Sincerely Deurward