Thanks for the info. The purchase price and rehab cost is less than 70% ARV. Some private lenders are currently reviewing my file.
To answer your questions, the home has no current mortgage. It is owned free & clear and the seller is apparently not in a position to hold any notes. We will not be bringing any funds to closing (with the exception of $500 earnest money we already provided).
I have discovered that every “private” money-lender has different requirements. I’m sure this deal will fit at least one money-lender’s criteria if not a few.
Posted by Isabel Acosta on May 10, 2006 at 23:56:40:
I’m not sure why my previous post was deleted…
Anyhow, I am looking for a private lender (NOT a partner). I intend to repay the loan with interest, of course.
I do have a house under contract and need the money to purchase & rehab. Both purchase price and rehab cost are at 70% ARV. The home is a SFR in Denver, CO.
Posted by Ben Carmona on May 11, 2006 at 13:55:56:
Isabel,
Congrats on your fine.
Remember that you will also need to factor closing and holding costs. Most of the lenders that you are looking to finance this will want the points and cost taken out of the loan upfront. Some will even want to take out the payments as well.
After these numbers are factored you may find that there is not enough room with a 70% arv loan.
Do you know if the seller would be willing to hold a 2nd or do you have funds to bring into closing?