Re: Need Hard Money or Conventional - Posted by Ben Carmona
Posted by Ben Carmona on June 18, 2007 at 08:54:11:
A hard money rehab loan may work if you have to go that route but we need to know more specifics.
Value after repaired, where are you coming up with this figure?
Are you saying that you’ll write up the offer at $300,00?
Let’s assume so and that value is around $300,000 as well due to market softening in CA.
Due to your score, let’s assume that the lender only allows for 60% arv. (May be other lenders with higher ltv).
$300k x 60% = $180,000 - $25,000 cost and 6 months interest - $40,000 rehab - $18,000 first lien = $97,000 to apply to sales price.
So that $97,000 would go to your mom and she’d hold a note for the $200,000? I’m not so sure that a hml would allow for such a large 2nd to be carried.
Where does your profit come in? Maybe I missed something?