Posted by Sam Merritt – NC on February 16, 2000 at 15:53:52:
Are there any hard money lenders in the Raleigh area or North Carolina that lend based on ARV? I am hoping to get 65% to 75% of ARV to cover purchase and fix-up.
I am looking at a property now that is priced at $28K. It needs approximately $19.3K in repairs, however, I have not confirmed this with my own appraisal of the repair work needed. It seems extremely high. In fact, I may have a relative locally do the work for considerably less. In any case, considering repair work, points, and prepayment of interest, I would need low $50’s to make this work with no money out of my pocket. Given the house at retail would be worth $70K, my “LTARV” is about 75%. Certainly, this percentage would come down with a lower repair bill. So, back to my original question – anybody in North Carolina willing to lend 75% of ARV?
An individual locally is working an arrangement with a hard money source to lend 55% of ARV. Given the ARV, I would only receive proceeds of $38,500 less closing costs, fees, prepayment, etc. After closing, there would be very little left for repairs. Of course, I can ask my relative to do the repairs and reimburse him for materials and labor after selling, but that puts a lot of risk on his lap.
Any help would be appreciated.