All Forum Posts by: Dawn Brown

Chris, I have a loan customer who did just that...applied for purchase funds, then paid for rehab out of pocket. Hard money will give you usually 65% LTV or 80% purchase price, whichever is less, depending on the lender. Hard money usually has a minimum purchase price of $75-100K, however, due to higher fees for this type of loan. Most brokers won't talk to you unless you have a contract in hand, but you can easily get proof of funds letters in advance. Definitely use the financing contingency when going this route. You might get a partner to help fund the project, then split the profits if you're looking to do a straight flip. If you're looking to hold and rent, or do an owner financing for an end buyer, you have more options of long-term financing after the rehab is completed and at ARV.

Non-performing means the borrower is not paying.  When you buy these notes at a huge discount, you can offer the borrower a deal to pay on the debt or a lump sum payoff.  Anything you collect over what you bought the note for (and costs of collecting) are profit in your pocket!