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Steve Reed
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Less than 100k purchase.

Steve Reed
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I signed a buyers agreement for a rural 2/2 for 66k and needs 30k in repairs. Appraisal shows 127k ARV. I’m having trouble finding funding for a flip or long term. Any suggestions on how to get out of the agreement or suggestions on finding funding?
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    Stacy Raskin
    • Lender
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    Stacy Raskin
    • Lender
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    If it's rural, and under $100K loan amount, funding is more difficult. Checking in with local lending options and seeing if there are recommendations from investors who have worked on similar properties by searching through online local real estate investment groups, meetups or Facebook pages that are in the same area could help bring up some financing options.  

    There are more lending options if not rural, if the property is a DSCR / ready to rent condition, over $100K and not a fix and flip. Under $100K and down to a $75K appraised value has options if a DSCR loan and not rural. Some investors will target properties that have more lending options as it helps to have more program options to scale a portfolio.

    If you need to get out of the agreement, I would review the terms- in most standard purchase agreements, there's a financing contingency that you can get out of the agreement if you can't find financing if you let the seller know within the timeframe mentioned in the contract.

    Fix and flip financing is more expensive on rates and fees so even if you can find a lending option, it's worth considering if the math makes sense for this property. 

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