Posted by Ed Garcia on December 27, 2000 at 12:51:51:
For Option #1, you don’t tell us how much you would make on the flip. I will admit that it’s like finding money on the ground, because you would have no exposure.
Option #2, would depend on your ability to find a hard money lender that would go 70% in New York. My suggestion when presenting this deal to the lender, is to recommend a voucher system for the fix ups. The lender may have required it anyway, but they will feel that you’re structuring the deal with protective measurements, and that will make them feel more apt to do your deal.
Option #3. See if you can work a deal with the seller, and have them refinance the property, pulling out $20,000 in cash for them to go to Hawaii, and the money you need to do the fix up. You can explain to them that you are getting nothing out of the deal except the money to fix up the property allowing you to sell the property at a later date.
You can tell them that you won’t make a dime, and are committed to make payments on the loan, until you sell the property. That will be your incentive to sell the property and pay off their loan.
Just food for thought,