Posted by Stephen on July 10, 2007 at 06:45:46:
Thanks for the replies.
Would you then recommend another type of lender instead of a “rehab” lender? A private money source?
Rehab Lender Financing - Liquid Assets? - Posted by Stephen
Posted by Stephen on July 09, 2007 at 14:44:58:
Hi Everyone,
I contacted a nationwide rehab lender with a good reputation.
They took a preliminary application over the phone. All of our stuff looked good - we have excellent credit, a house with lots of equity, good jobs. The downside, we don’t have a lot of cash reserves and some credit card debt.
They asked that we have $25k in available cash per $100k we want to borrow. Is this typical? If we had that kind of money available, I don’t think we’d need a rehab lender.
Your help is appreciated. Thank you.
Re: Rehab Lender Financing - Liquid Assets? - Posted by Ryan
Posted by Ryan on July 10, 2007 at 17:44:36:
Let me know if I can help. I know where to get rehab money in any location. www.rehabwealth.com
Ryan
Re: Rehab Lender Financing - Liquid Assets? - Posted by Tom Resner
Posted by Tom Resner on July 10, 2007 at 11:09:57:
What type of property? In what state? If it is a 1-4 unit in the right state I believe I can help solve your cash reserve issue. I have a rehab specialist that finances up to 80% of ARV. They have no set reserve fund guidelines. Call 866-776-2915 if you want me to look into it for you.
Re: Rehab Lender Financing - Liquid Assets? - Posted by Ben Carmona
Posted by Ben Carmona on July 09, 2007 at 21:23:53:
Requiring documention of income is uncommon for hml.
Although some lenders have been conservatively restructuring themselves to adjust with the market.
Ben Carmona
Re: Rehab Lender Financing - Liquid Assets? - Posted by Neil (MD)
Posted by Neil (MD) on July 09, 2007 at 19:35:08:
Stephen,
I can only speak for myself. When my partner and I lend hard money. We don’t have a rule of $25k per 100K, but we want to see enough cash to come to the table with closing costs, be able to front the first constuction draw, be able to make payments and handle the ‘oh by the ways’.
So, 25K per 100K is not unreasonable.
Re: Rehab Lender Financing - Liquid Assets? - Posted by Penny
Posted by Penny on July 09, 2007 at 18:05:23:
My lenders will finance 80% of my build-out/rehab costs on commercial properties. They expect me to come up with the other 20%. So 25k in your pocket for every 100k they lend you isn’t unusual.