Posted by Stacy (AZ) on May 31, 2000 at 13:14:18:
A few thoughts-
Your deal may be borderline for a loan because it’s so small. But, maybe you could agree to pay more points to make it more attractive. You can always ask and bargain. As long as you can still see an acceptable profit, who cares about paying a few more points?
Keep looking. When you said “broker”, I started to wonder if this was a true hard-money lender. There may be a lender out there that will loan to you based on value after fix-up. Typically, I’ve found that they hold the fixup funds and release them at stages.
Look in the Sunday paper under “Money to Loan” or “Real Estate Finance” if you are running out of ideas. When I was starting out, I also called all the mortgage lenders in the yellow pages and described what I needed (equity based, not necessarily credit based). Eventually, some people referred me to a couple of hard-money lenders, one of which didn’t advertize.