How do I get a LTV instead of sale $ - Posted by JeffS
Posted by JeffS on June 16, 1999 at 14:51:20:
Help, I found a great deal, but how can I get a loan based on percentage of value, instead of sales price? Owner is scared to do anything that might cause him to be stuck with property again. ie: land contract, or owners terms, etc.
It is a vacant double, ARV is $70-75, Rents $900/mo., seller wants about $34k, needs $10k in repairs.
So, $70k - $10k (repairs) = $60k * 75%ltv = $45k loan. and everything is covered. Now why can’t this get financed?
Instead I am working towards getting std bank loan for 80 - 100% of sale price (high cost) and using equity line for repairs. Then just paying off LOC with cashflow or refinancing to get money out.
Is there another way?