Portfolio Lender allowing me to " Add " the Repair Costs into ??

[Michael Dunn]

This is a question , that I am for sure going to need to know the answer to , before I proceed any further with this particular Investment Property 

My Question is ............  Will a Portfolio Lender let me " Add into " the Total purchase Price , the costs that I have already estimated that it will take, to repair and renovate this Property  (  $20,000  )  , AND THEN  " Take out "  that  $20,000 once I purchase the property , to begin the renovations and do the Repairs to it ? 

I don't have in Cash , the money to do the Repair work to this property 

But I am going to get such a great deal on this property , that even after they Finance it at 80% LTV , and even after Closing Costs, Pre-Paids, the Price I'm paying for the Property in General ........... There will still be around $20,000 - $25,000 in CASH left over, of which I was hoping I could use to repair the property

How then , would I be able to get this $20,000 or so ? 

Would the Lender lend me the Money for Everything , with a Clause stating that the $20,000 had to go towards the repairs , and that I had to have the work completed in a certain amount of time  ( 6 months ) ?

Or would they  " Front "  me the $20,000 , with a Contingency being that the Repairs would have to be Completed FIRST , and then they would Finance the Property and just add in that $20,000 to the Overall loan ?

So long as the Seller as ok with everything , and they sign off on whatever the Lender is willing to do , should there be any issues ?

And lastly .......... Would the Lender likely allow myself and my dad to do most of the repairs, given that we have both been Contractors for 10+ years each ........... What kind of proof would they likely need ?

Thank you so much for the time and the help 

[Dell Schlabach]

Originally posted by @Michael Dunn:

This is a question , that I am for sure going to need to know the answer to , before I proceed any further with this particular Investment Property 

My Question is ............  Will a Portfolio Lender let me " Add into " the Total purchase Price , the costs that I have already estimated that it will take, to repair and renovate this Property  (  $20,000  )  , AND THEN  " Take out "  that  $20,000 once I purchase the property , to begin the renovations and do the Repairs to it ? 

I don't have in Cash , the money to do the Repair work to this property 

But I am going to get such a great deal on this property , that even after they Finance it at 80% LTV , and even after Closing Costs, Pre-Paids, the Price I'm paying for the Property in General ........... There will still be around $20,000 - $25,000 in CASH left over, of which I was hoping I could use to repair the property

How then , would I be able to get this $20,000 or so ? 

Would the Lender lend me the Money for Everything , with a Clause stating that the $20,000 had to go towards the repairs , and that I had to have the work completed in a certain amount of time  ( 6 months ) ?

Or would they  " Front "  me the $20,000 , with a Contingency being that the Repairs would have to be Completed FIRST , and then they would Finance the Property and just add in that $20,000 to the Overall loan ?

So long as the Seller as ok with everything , and they sign off on whatever the Lender is willing to do , should there be any issues ?

And lastly .......... Would the Lender likely allow myself and my dad to do most of the repairs, given that we have both been Contractors for 10+ years each ........... What kind of proof would they likely need ?

Thank you so much for the time and the help 

The best thing to do is find a local portfolio lender or two, tell them what you want to do and ask them what your options are.

Around here there are a couple that will fund 80% of the purchase price and then give you the money for renovation up to 70% or 80% of after repair appraisal.

We have one, where if you buy with cash, you give them a basic scope of the renovations planned, they do an after repair appraisal and will lend up to 80% of that appraisal.

Small local portfolio lenders have some options for solid borrowers.

Good luck