Posted by Jimbob on October 20, 1998 at 09:51:52:
If the actual market value of the property is $128,000, you might just be able to squeak this one through. Typically hard money lenders loan up to 65% of the market value, sometimes 70%. If you locate an “equity” based lender, chances are he will loan you the money if you can fog up a mirror with your nose.
Be prepared to pay up to 10 points, and 12-16% interest on the money, and you may also have a short term balloon payment like 1 year. But hey, if it’s a great deal on the house, thats cheap compared to the profit you can make. If I were you, I’d buy it with hard money, spruce it up really nice, then sell it for a profit.
My Two cents…