All Forum Posts by: Tequila Lamar

Hello!

I'm trying to get hard money financing for a rehab and I'm having a hard time finding comps for the ARV. Looks like I'm going to be the first to establish value in this area but I need existing comps for the appraisal.

Does anyone have any advice for how to handle this situation with hard money lenders/appraisers?

We have a duplex and we’re doing a full gut. It’s hard to find fully rehabbed duplex in our area. We have some comps to support but they’re more than a mile away. Our plan is to air bnb both units and potential income also supports the value we believe we will have. 

Thank you in advance!

-Tequila

@Chris Seveney It's Dutch... guess we'll focus on cutting the rehab time since there's no pre-payment penalty.

Thanks Jacob! It's 18k out of pocket (points and closing cost) and we already own the property for this is purely rehab financing. We've been out of the game for a while and considered newbies at the point without any deals in the last 3 years.  

Another thing I'm thinking is the points include a 3rd party fee because we went through a referral. I assume his fee is included in the 4.5%. 

Good to know nothing here looks too crazy!

-T

Hello! I received the follow terms for a hard money loan. Is this a good deal?

It's for a full rehab of a duplex. 3 beds and 1 bath in each unit. $400,000 ARV.

Total Loan Commitment: $295,000 

Interest Rate: 11 %
Initial Funding: $15,000 

Origination/Loan Fee: 4.5 %
Rehab Holdback: $280,000 Rate 

Buydown Fee: NA %
Other Holdback: NA 

Buydown Interest Rate NA %
Max LTC – As Is 75 % 

Loan Term (Mos.): 12
Max LTC – As Repaired NA % 

Extension Term (Mos.): NA
Max LTV – As Is: 75 %

Extension Fee: NA%
Max LTV – As Repaired: 70 %

Prepayment Fees: none
Min DSCR (Rental Loan): NA

Exit Fee: none
Total Cash Investment: $18,463 

Breakup Fee: none
Required Liquid Assets: $20,000 

Recourse Type: full
Monthly Debt Service: $2,704.16 

Thanks in advance for reviewing!

-T