Posted by Ed Garcia on January 25, 2001 at 11:04:07:
You really haven’t given us much information. I don’t know your personal financial qualifications, or how much money you have, or you’re going to need to rebuild the house, bringing it back to market condition.
Born, your market value after repairs of between $150,000 and $235,000 seems to be quite a spread. I really don’t think you know what you’re doing.
What I would do with my circumstances is simply go to the bank with 3 bids from 3 different contractors. I would also find out who the appraiser is, who appraises for the bank, and have him appraise the subject property in its current condition, and the market value after the rehab. I then would present this deal to the bank as a construction loan. I would have a take out loan approved and in place, to show the bank that I can get them out of the deal if they shouldn’t want to roll my loan over in to permanent financing.