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135
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47
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Alon A.
  • Investor
47
Votes |
135
Posts

Hard money for flip & rental

Alon A.
  • Investor
Posted

hey guys

i have a question that ill need your help please, i have a deal of 300K purchase , 55K renovation, ARV is 450K, 2 months of remodeling

property tax is $8500 per year, Rent is $2600

Property in Dallas TX

Hard money lender

75% of ARV - on rental property for BRRRR

70% of ARV - on Fix and Sell (Flip) property

terms for both options:

14% APR interest | 2.99% Loan fee | 12 month term (potential to roll 1% into refi) | $1495 processing fee

How do I calculate the Net profit after selling in flip ? After all expanses, pre paid hazard insurance, closing costs title.. everything.

Can you help me out how to calculate it, I dont understand online calculator and want you will explain me here

the 2nd question is: lets say i go to the rental way BRRRR , after I finish the 2months of remodeling, after i finish it convert to conventional loan, how it works from the conversion of the hard money loan, property ARV is 450K,

Thank you so much !!

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