Trying to make this deal work!
Cash Price: $129K'
Rehab Costs $100k
Initial plan was to have an GC purchase house cash, get hard money for rehab and the flip it to my partner and I. However he has decided the margin is too thin for him to do that.
He suggested we purchase the deal using a hard money lender, getting a loan for 70% of purchase price, 100% of construction costs at 13%. At this time we do NOT have the capital to cover cash cost of house and entire costs of construction.
However my partner and I are trying to avoid the large costs of a hard money loan if we can and we are not quite sure any potential risks of using hard money since it isn't a flip and will be a buy a hold in regard to seasoning period and refinancing in a timely manner to pay back hard money lender.