MY FIRST PROPERTY!

[Benjamin Willis]

So I am looking to purchase my first property. This place has been foreclosed and has potential for appreciation. In this particular place the market is good for flipping. My problem is getting a bank to lend to me. I've been to the tax office to find out what the home is worth and it is worth a significant amount more than what the bank is asking. Could I use the fact that the home is worth more as it sits as  collateral for the loan be as the bank could easily make they're money? Or would they laugh at me?  

[Kusmayadi Djunaidi]

For flip, the bank will have a hard time to lend money based on my knowledge since they only collect small amount of interest with short period of time. You can, however get the money from private money lender if they see the deal is right and they can 100% sure they can lend you money with higher interest (12% or up) and points.

Also, tax assessment does not mean that the house can be sold that high. In NJ, your house can be tax assessed for $150k and only sell for $100k or lower. Or, in my area, they can be assessed only $70k and you can sell $285k (which just happened recently).

I hope this helps.

Sincerely,

Han