Advice on Hard Money Loan for Bank-Owned Rental

[Sara Finley]

Hello!  This is my second post as a newbie and looking for some advice.

We currently have 3 rental properties (closed on the last one in June).  Things are going well but I don't have enough capital right now to do another deal.

I found a Bank-Owned Property listed at $37,000, which i know is worth at least 70 to 80k.

Our previous private lender (aka father-in-law) is not interested in a 4th deal at this time.

3 Bed 1.5 Bath, off street parking, Rents range from $1200 to $1300/month.

I am looking at HML (eeeewww I know) and am wondering if there is a way i can get the full deal covered by the loan (w/little or no cash out of pocket) because of the loan to ARV ratio. If I am reading things right - I could borrow 40K (which is only 50% ARV)? Or am i totally calculating that wrong. Property needs less than $5,000 in rehab, paint carpets, etc.

Orrrr... should i take it easy and build up some capital and wait for another deal?  

Thanks

Sara

[Priscilla Z.]

Hey Sara...anything is possible, but from my experience no HML is going to lend you 100% on your first deal. We've gotten them to before, but after many deals under our belt. They usually want some skin in the game.

Those numbers are great though, start talking about your experience to everyone you know and you may be able to find the money to fund it without having to pay the high HML rates....they say we have the investors we need right in our contact list.

Make it happen girl....!