All Forum Posts by: Artem Moskalenko

Hello All,

I am thinking to purchase a fixer upper property using a hard money loan, fixing the property up and then refinance into a primary conventional mortgage loan and live in the house as my primary residence. Few reasons I'm thinking about using hard money loan to purchase the property:

#1.) The property is listed on the MLS as a cash only fixer upper and will not qualify for a conventional loan.

#2.) Using hard money loan to have a competitive "all cash" fast close offer. 

I saw a similar post about 7 months ago by "Mike Romano" with a similar question, however I didn't feel like he explained the reason why he was planning to use a HML instead of a standard conventional loan in the first place. I understand HML have lots of associated costs to them but the main reason im considering this option is because the home is listed way below market value and is a cash only property. The plan would be to take 4-6 months to fix up the property, and then refinance it into a 30/y fixed primary mortgage and then move in/live in the property as my primary home. Another possible option would be to do a cash out refinance to get some of my rehab money out of the property and only leave my 10-20% downpayment (whatever the HML lender requires to purchase the property)

I would love to know if this is possible or if there are any issue with the plan, especially in the refinancing into a primary portion. 

Thank you in advance. 

Ronald,

I appreciate the response! Im assuming the process is different each time but is it possible to close faster with a cash offer? Or does an estate sale process typically still take a bit longer?

Hello,

I am looking into buying my first flip. I found a house that is priced well below market value and the comps around it. But it is an "estate sale" 

Does anyone have any helpful tips or information what the process can look like? Does it take long to sell and close compared to a standard home sale?