Can this work?

[Stan Jackson]

Buyer is interested in purchasing a home for $80k with approx. $50k in repairs. The after repair value is estimated at $214k based on comparables pulled by realtor.

Can the buyer take the executed contract to a hard money lender for the purchase and repairs, considering the total acquistion cost ($130k) is roughly 60% LTV?

What are the possible problems?

[Jon Holdman]

What's the buyer's exit strategy for the hard money loan?

What's the buyer's exit strategy for the property?

There will be points on the loan, typically 3-5. Rates are 12-15%, monthly interest only payment. Terms typically not more than a year.

May have a tough time finding someone to do the loan if they're planning on living there.