funding needed for buy and rehab home

funding needed for buy and rehab home

Wholesaler/rehabber · Arcadia, FL · Member since 2013 · 341 posts · 22 votes

A multi-family home i been looking at and very interested in has come up with a number of issues from the current tenants that don't want me to get screwed in the deal. now the home has a foundation issue because the basement keeps flooding. the current owner has had to refinance the home to pay for back taxes never paid. the wood beams in the basement are rotted real bad. the boilers need replacing and walls need insulation the electric in one of the apartments is illegal and running off of the boilers electric. the septic is draining into a nearby lake and the pump that is suppose to keep the basement dry isn't pumping the water out fast enough and is also draining into the nearby lake. some of the siding need replacing and the floors are slanted to some degree. the current owner and previous owner are friends and have not done any repairs. i still want the house but how do i go about getting funding to buy and rehab the house without doing a traditional loan or hard money since 35% up front is to much to come up with. also is there a way to force the landlord to sell the home cheaper the town has it at 207000 but he is asking 359000.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    13y

    "...is there a way to Force the landlord to sell the home cheaper..".
    You want to rephrase that?

  • Wholesaler/rehabber · Arcadia, FL · Member since 2013 · 341 posts · 22 votes
    13y

    well he want way to much for the home in its current condition. just wondering if there is a way too get it cheaper because he isnt budging on the price and it just doesn't make sense to buy for that high when its appraised for that low.

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    13y
    Originally posted by Shequann Burrwell:
    well he want way to much for the home in its current condition. just wondering if there is a way too get it cheaper because he isnt budging on the price and it just doesn't make sense to buy for that high when its appraised for that low.

    Sounds like he's not very motivated. And if he's not motivated, there's not much you can do, other than wait and hope he gets more motivated...

  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    13y
    Originally posted by Shequann Burrwell:
    well he want way to much for the home in its current condition. just wondering if there is a way too get it cheaper because he isnt budging on the price and it just doesn't make sense to buy for that high when its appraised for that low.

    ? appraised or assessed? It's one thing if you have seen a current appraisal, but a town's assessment value may have very little to do with current market value.

    I'd suggest getting a better handle on valuation. It may be that the asking price is closer to reality. Then as J said, wait until he gets more motivated. Or just buy the Force the seller to sell cheaper bootcamp for $297.

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Shequann Burrwell, if you're truly looking for a lender, you'll need to post in the Marketplace forum. Since this seems to be mostly a discussion about your deal, it can stay up.

    You say "the town has it at 207000". I suspect you mean that's the assessed value. Thats largely irrelevant for your purposes. Before you can even begin to think about doing something with this house, you need to figure out what its worth.

    Sounds like you want to fix and flip. If you're going to do that for houses in the $400K range, you need some serious cash. Sounds like you're new to this game. Getting funded for 100% of the costs with no track record is just not going to happen. Even if you have a good deal, its really tough to be a flipper with no cash.

    If you're trying to buy this place to hold, then you will likely need even more cash of your own. What's your plan for this property? What its worth when fixed up? Those are some pretty serious issues (foundation, sounds like, combined with the nearby lake and septic issues sounds like there may be fundamental soil issues.) Any idea what it will cost to fix? What are the rents?

  • Wholesaler/rehabber · Arcadia, FL · Member since 2013 · 341 posts · 22 votes
    13y

    I would like to fix and hold i have family members that want to move in but for what he is asking for would be the arv value of the home. zillow has it at 248000. everything that was wrong with the house was showed to me by one of the current tenants in person a number of times already. i was there yesterday for about a hour and he was going on and on about how the current owner is basically a slum lord won't fix anything and when he is forced finds the cheapest most unreliable person to botch the job. its a old home and needs the work before anyone else moves in. I know the cost to fix will be a lot just by seeing the slanted flooring and the furnaces that will need to be fixed and one added. i can get funding for the home but not at 359000 more like 300000 on a traditional loan but thats without rehab funds. i just was looking for a way to get it cheaper then what he is asking for because it really isn't worth it and its just seems to me that the he is trying to sell a junk home with out saying what needs to be all fixed. actually when i was there yesterday the new owner of a home this guy recently sold came over looking for him because he sold him the house telling him that it had no basement meanwhile the basement was just flooded and he didn't want to pump it out.

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