Okay Hard Money and Private Lenders! What would you say to me??

[Jason Krick]

Allight then everybody. I have a lead on a deal for a rehab and sell project. I could also rent it out as a second exit strategy. Some of this is hypothetical, and some is based on a property I am researching. I would like to know what I can expect if/when I would go for a HML. Please be honest, and constructive. If you would not loan to me, please let me know what I can do to to improve my chances.

This isn't a specific request for funding.  I am just looking at what I should be prepared for.

First, the property:

2/1 Twin 936sq ft

Radiator heat

No A/C at this time

Purchase price:  $20,000

Rehab Costs:  $35,000 (hypothetical,  I am assuming one major repair on top of cosmetics)

ARV: $95,000

Rehab costs are inflated.  Based on pictures, it is mostly cosmetic stuff, and my partner thinks 15-20k should do it.  I am overestimating.

ARV is conservative. Comps in this neighborhood would be around $110,000 at this size.

This would be my first flip.  My partner will do the rehab and sub out any necessary jobs.  (Electrical, etc.).  Our partnership is 50/50.  I am responsible for finding properties, negotiating, and financing.  Basically, I am the "face" of the partnership.  He will take care of the rehab.  As such, our rehab costs consist of supply costs.  He will be paid when the house is sold.  He has a history of flips and rentals, but has been out of the game for about 3-4 years.

So, those are the numbers and I come to you as a first-timer looking for financing.  My credit score is 700 on the nose. (Damn you ex-wife!).  Based on these numbers, if you require out of pocket money, it will come in the form of a 401(k) loan, which I would repay after I sell.

How does it look for me as I search for funding?