Ed, can this be done? - Posted by CurtNY

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,

Ed Garcia

Ed, can this be done? - Posted by CurtNY

Posted by CurtNY on December 27, 2000 at 12:06:20:

First thank you for all your support on this website. Its amazing how generous you are with your time. I have a possible deal I need help with. Heres my deal: I’m looking to buy a 3/1 (NY) property needs about $15,000 in repairs. The seller is motivated, he’s moving to Hawaii in March (just offered early retirement). Needs $20,000 to go, house comps at $80,000 I’m going to offer 1. 34,987 all cash (to flip to another investor) or 2. $40,000 - seller holds a $20,000 second, I get a $35,000 first (hard money loan), he gets his $20,000 and I get $15,000 cash out for my repairs. My question, is this possible, will a hard money lender go for it (option #2 of course), the ltv is still below 70%? I’m going to the Building Dept today to find out some particulars regarding an oustanding building permit (to confirm my repair cost is accurate), then I plan to make the offers. Thanks for your help in this matter