Posted by rm on July 25, 2003 at 22:20:57:
On a HML for rehab, closing costs should be rolled into the loan, and you shouldn’t have much in the way of carrying costs.
You’ll be paying your insurance premium up-front, the only thing you’ll have is taxes, which you shouldn’t have to cover until closing. That leaves utes and maintenance, which should be minor.
ARV Lending - Posted by Nick Rivard
Posted by Nick Rivard on July 21, 2003 at 17:09:15:
I have found a REO property in Pensacola FL that has been on the market for quite a while (originally listed at 104,000–now down to 87,900 though my offer will be 77,000). The property needs no more than 10,000 in rehab (new carpet/tile, some paint and some roof work) while the ARV will exceed 130,000. I need lending (preferably 80%) based on the ARV of the property so that I can purchase and fix with said loan. My credit is above 700 but my reserves are low. Any help with a program like this, or suggestions on another route of financing would be greatly appreciated.
Re: ARV Lending - Posted by Earl Heinz
Posted by Earl Heinz on July 21, 2003 at 21:39:57:
Nick,
You can get a hard money loan through security mortgage services in Orlando. (407)244-5000 They’ll lend you up to 70% of the ARV. For this deal they’ll require you to escrow 5k cash into a rehab escrow account and they’ll lend you everything else including the rest of the rehab. After the repairs are done you can do a 80% no seasoning cash out refiance. Shoot me an email if you have any questions.
Earl Heinz
Re: ARV Lending - Posted by James Strange
Posted by James Strange on July 21, 2003 at 20:32:43:
Most equity lenders do not lend 80% of the ARV. Even if you find one to lend 80% they will want to know what you will do with the cash.
If you buy at 77,000, need 10,000 for repairs roll in some loan cost that still leaves about 10,000. What do you plan to do with the extra $$$.
Re: ARV Lending - Posted by nick
Posted by nick on July 22, 2003 at 13:33:25:
My plan was to resell within 2 months, worse case scenario it took 6 months to sell–the extra 10,000 is for closing costs and carrying costs for 6 months.