Dave,
The house in question is 1323 sq. ft. Renovated comps in that neighborhood are at least $60K - I’m going on the low side there, since it could go as high as $70-$75K, based on recent sales of similar homes in the immediate area (which is the same street). I’m planning on flipping THIS property wholesale, but after this one, I’ll need a hard money lender to secure funds for rehab at time of close. I’d then sell properties retail.
The long and short of it is, I’d need to show the realtor representing the bank that I’m approved for the funds to acquire this property. For that, I need the proof of funds letter. Again, thanks for any help you can give me on this.
Hello all,
I did post this in the general forum, but I thought this might be more appropriate here. I’ve found a property that’s bank-owned that I’ve made an offer on. This house totally works numbers-wise - 70%FMV is $42K, rehab should be $20K, I have my profit as $5K, which should take us down to $17K. This house is listed for $11,900, and I’ve made an offer of $7500. Even at full price, this one works, as it’s in a great neighborhood for sales and/or rent. Problem is, I need a proof of funds letter, and I won’t qualify for a mortgage - YET. Where do I find a letter like this? Are there any hard money lenders that would do this deal and similar ones, regardless of credit? I haven’t found one here in Harrisburg, PA. Thanks in advance for all your help.
What is the square footage of the house and what are renovated comps of that size going for in that neighborhood? Is the FMV of $60K based on current market conditions, older appraisal or a recent tax reassessment? Are you planning to do the rehab yourself or with contractors and will you need to secure funds for rehab at time of close? Are you planning to flip this property wholesale, renovated and retail, or hold and rent?