financing - Posted by Internos

Posted by Marc in Portland on March 19, 2001 at 17:58:56:

Several hard-money (private) lenders in my area loan 65% of the present appraised value on foreclosure buys. I would imagine similar lenders in your area will also. They typically charge 15% interest with a 5% loan acquisition fee. In your case, I wouldn’t hesitate to use them, even at those prices. Good luck.


financing - Posted by Internos

Posted by Internos on March 19, 2001 at 14:06:23:


I just “bought” a house on the town steps today. I put $11,000 down and now need some financing (~72K) to own it. I plan to do a quick renovation and flip it. Total investment is approx 83K and market value is conservatively 120K.

Does anyone know of a lender who can help me in this situation?



Re: financing - Posted by Paul Macdonald

Posted by Paul Macdonald on March 20, 2001 at 08:51:33:

For a simple answer on an actual lender/investor who’ll be able to help you need to supply a lot more information. Where is the renovation money coming from? How’s your credit? How’s your cash flow? What are your debt to income ratios? Is the house livable?

Depending on your credit and the state of the property (is there a lot of deferred maintenance? Is it habitable? Cert. of Occupancy?) and your debt to income ratios (would your loan be full doc? Stated income?) and your time frame (if you need to settle in 10 days versus 30/45 days) there are several possible different answers.

A few of them:
You’ve put down over 10%. With good credit, good DTI’s and the property being fit for occupancy a 90% LTV investor loan would be simple.
With other collateral you can do a balloon and cover your bill if your credit is bad or if you need to borrow the renovation funds.
With great credit, and a livable house, a 100% stated income investor deal is not out of the question. And use the 11k you put down as cosmetic upgrade money. But you’ll have to have walk on water credit for this one.

Get Ed on the phone. He has good sources. If he cannot help send me an email. I’ll try to help.

Good luck.

Re: financing - Posted by SC

Posted by SC on March 19, 2001 at 19:33:44:

How did you find that deal?