Now I've got the deals..where do I get the money! - Posted by bvmp

Posted by bvmp on December 09, 2000 at 24:39:47:

Per the mentoring and exchange of info on this site, I took the plunge, spent a weekend and scoured for THE DEAL. What I did not realize is that if you are really willing to work is there are a lot of opportunities out there.

In less than 2 weeks I now have 5 properties under contract.

4 of which are rehab deals. Now where do I find the Hard money lender to come in and provide funding to turn these deals around. I’m thinking about one mortgage for 4 properties. It will look like this:

Proerty 1:
Purchase Price-$50,000
Repairs Needed- $12,000
REAL ARV- $78,000 based on comps

Property 2:
Purchase Price-$22,000
Repairs Needed- $16,000
REAL ARV- $72,000 based on comps

Property 3:
Purchase Price-$48,000
Repairs Needed- $15,000
REAL ARV- $82,000 based on comps

Property 4:
Purchase Price-$26,000
Repairs Needed- $16,000
REAL ARV- $70,000 based on comps

So now here is my question:
My Total Down Payment for all 4 properties - $4,000
Money Needed to fund purchase and rehab - $205,000
REALISTIC Total After Repair Value - $302,000
LTV of Financing needed:67%

Where do I find the money to blanket these properties with one mortgage?

I was thinking:
5 points and 15% interest only plus a 50/50 split on profits with a lender / investor. I propose this because I need someone who can close definitively within 10 - 15 days.

Any Ideas or suggestive help. I sure could use some direction…Thanks ( by the way did I mention that my credit is pretty lousy (low C to D) But I sure can find good deals and put them together!!)

I feel good about this business and if there are hard money lenders out there who truly can turn around a closing quickly and rely on the property value more than credit…I’m your guy.

Help everyone!!