Found my First Deal…Now I need HELP! - Posted by Fran (CA)
Posted by Fran (CA) on January 31, 2001 at 20:11:37:
I can’t believe I found a rehaber in our area. I was so shocked. It is listed with a realtor, but here are the specifics:
Owner passed away last year and house is held in trust. House is also vacant.
Listed: 470K (realtor said they are thinking of lowering to 440K)
FMV: 525K (could go higher)
Repairs: 10,640 (termite and fungus damage in crawl space under the house, will have to tent house for termites)
Additional repairs to get it marketable: Upgrade kitchen (has original stove, sink, etc.), baths (some work to be done for fungus damage to flooring in above estimate), flooring throughout (hard wood floor throughout with carpet over in some areas), repaint interior (exterior needs a couple of minor fixes). Estimate 20K
Roof: 3-4 years new
420K would be 80% of FMV
367K would be 70% of FMV
So what would be a good offer? What would a hard money lender give me? I would need to have the cost of repairs included in the loan. Would I be able to get a loan for 400 - 450K and still make money on the deal if I sell it in three months? I could probably sell it in under 30 days completely fixed up. Another house with same floor plan sold for 600K last month. Since the house is in a trust, is there anything that I can do to do the repairs and then sell it giving the trust the money after the sale? Last question, does anyone know any hard money lenders in San Francisco Area?
I think that is all the help I need for now. I am sure I will need more.
Thank you everyone for your help!