HARD MONEY MORONS! - Posted by Chris in L.A.
Posted by Chris in L.A. on August 25, 2003 at 16:11:55:
I recently put a house under contract that needs virtually no work, but spending $5000-7000 would make the place gorgeous, The contract is fully assignable and the contract is for 299,000 the house is comping at 375,000. I call one of my hard money lenders to tell him that I will probably need 320,000 to see the whole process through and he tells me that the only way I can get the 320,000 is to either change the purchase price on the contract from 299,000 to 320,000 and have the seller give it to me outside of escrow(which would make the seller very suspicious), or to purchase the house for 299,000 and later get a rehab loan which will take up to 6 months?!?
My hard money lender also said that even if the house was worth a million dollars and I was getting it for 299,000 they won’t loan me more than the purchase contract says!
What? Is my hard money lender a moron? Please help I have already lost one deal and a portion of my Earnest money because of one deal falling through. Thanks.
Also what does my appraisal need to say the property is worth for me to get the 320,000 I need to see this through?