Posted by John STL on March 03, 2001 at 23:27:07:
Hi, i was wondering if you are also in the St.Louis area? I saw your username was stlinvestor
No problem finding deals but… - Posted by Day’ah Sa’rah
Posted by Day’ah Sa’rah on March 03, 2001 at 22:05:30:
I’m having a hard time find hard money lenders that will loan based on the after repaired value. I’d also need 3 to 6 months payments withheld for the closing proceeds.
The brokers I’ve spoken to all but laughed at me for suggesting this. Where did I go wrong?
Please help!! Any advice or comments are appreciated.
Thanks very much and take care.
Day’ah Sa’rah
stlinvestor@yahoo.com
Re: No problem finding deals but… - Posted by J. Clifton
Posted by J. Clifton on March 04, 2001 at 17:42:00:
If your local lenders won’t do value-after-repair based loans, contact national hard lenders who will do loans in your state; or ask upfront if they will accept a “mixed use, no questions” purpose for the loan.
Or, you can make “split-cash” offers where the seller will get only a third or half of the cash now, with the remainder due in 6 months or so. That may allow you to get a 50% hard loan that covers the down to the seller, fix-up and holding costs. (Alternatively, you might call the holding costs your “profit” if pressed about it.) Upon resale or refinance you would pick up the rest of the proceeds needed to pay off the seller and realize your profit.