Yes, they are generally referred to as Hard Money Lenders. They will loan a total of 65% of the ARV(After Repair Value). They also charge generally between 14%-18% for the money. So it is best to have a fast as possible game plan to repair the property and refinance A.S.A.P. Most hard money lenders don’t care to much about your credit or income (as long as your credit is not horrible). But it would be wise to seek a pre-approval from a lender such as Bank One for the refinance (they don’t have property seasoning issues) before you commit to such a deal with a hard money lender.
BURNED PROPERTY…should I make offer? How do I get Fix-Up Money? - Posted by Tony James
Posted by Tony James on February 15, 2000 at 05:18:03:
There is a property that is boarded up. It looks nice outside with a garage. 2200 square feet. The FMV averages $55 per square foot in that area. I say the FMV is at LEAST $100,000 for this property. They want $25,000. I am thinking about offering $15,000 CASH. A realtor told me to prepare to put in $40,000 in repairs, because there is fire damage. I don’t know to the extent yet. But I notice there is no broken windows or no whole in the roof that I have sen in othr places that have been burned. So I figure That comes to about $55,000 investment on a $100,000 house. Is there FUNDERS/LENDERS out there would invest in a project like this?