Posted by Paul Macdonald on November 15, 2000 at 07:46:10:
Biddy,
You’ve got 12 days to settle on a place that will make you 20k (not including carrying costs). With no money. And 15k in repairs needed. What happens if you peel off the first layer of repairs and find that more needs to be done? You’ve got no cash and you’re finance source won’t put up another dime. You’ll be the next gotta sell don’t wanter for the place.
You are not going to get any type of financing I know of. Even hard money is probably not available with 20% of repaired value (its actually 40% of the purchase price) in deferred maintanence.
So find a contractor/handyman to flip it to for a quick 5k profit in your pocket. 5k would probably be 50% of your best case net anyway.
I am in desperate need for financing for my first deal. Here is the scenario, bank foreclosure, in fair condition, asking price was $45,900, offered $38,200, offer has been accepted. Bank wants me to close on November 27,2000 - the quick close is the reason they accepted my offer. My problem is that I have absolutely no financing at all. no money, nothing, zilch, nadder. I don’t want to lose this deal as repaired value would be $80,000, based on the comparable sales in the neighborhood. You now see why I don’t want to lose this deal. I’ll need money to purchase, and about $15,000 to fix up. I live in the state of Maryland. Any financing ideas would be greatly appreciated. Thanks
Biddy-
Have you had any suggestions other than the one here? I am in the same boat, but in Indiana. I’m not giving up until I find a way to pull this together. Will you email me ASAP if you get any useful advice? Please. Thanks.