All Forum Posts by: Mike Klarman

Yep, hard money is great for fix and flips. Most have a 90%/100% program. That's 90% toward purchase price and you get 100% of the rehab. They will require a minimum ROI on the deal which is usually 10 - 15%. There are even 100/100 programs out there now. You need to fit qualifications for experience, credit score, and show tax return though.

But yes, you will be paying the loan as you fix the house - that's your carrying cost. Some lenders will delay the first few payments and add them to the back end when you either refi or sell, but again lenders that do that also want to see certain qualifications and sometimes they lower the LTV of the loan.

Hit a homerun.

Youtube has a wealth of videos about starting a real estate career with little to no money of your own invested.  Some people start on the wholesaling side.

I've never seen 15% down on anything that wasn't a fix and flip.  I feel for you in this situation.  Seems like a huge gap in the comp values.  Given it is 4 bed and 2 bath on a lakefront, I'm going to say you will not be in the bottom rung of value (630k - 650k).  

You will need an appraised value of 738k approximately for The situation that Joe describes to come in for you.  So, you can be outside of the top 5% of the higher valued comps and still make option 3 happen.

Never know.

Nice deal.  It's nice when you find them sitting out there like that.  Doing the work yourself never hurts either.  Love to see real estate investors get that kind of return.

Great job!