Funding for Newbie Duplex purchase

[Shannon Conklin]

Hi Everyone.

This is my first post on BP so please excuse any protocol breaches I may make. My wife and I are looking for our first deal and after months of looking we found one that we love. Its a side by side duplex that needs quite a bit of work. Electrical, siding, kitchens some HVAC and windows. My wife and I actually contracted our first house and completely rehabbed our current one and we have a good contractor lined up for work we dont want to do (heavy electrical, siding etc) but we do not have an REI portfolio yet. We are considered newbies. We have cash for the property and had a local hard money lender that we met at a local meet up . When he heard that it was a 20 -30k purchase and 60-70 rehab he was out. I totally understand the risk aversion and I will do business with him in the future. His company would prefer a 40k purchase and a 10-20k rehab for newbies and i understand that. My question is , do you guys and gals think I can find a good lender on that property or should we just let it go and chalk it up to the disadvantage of being too green for lenders.

Any other suggestions would be greatly appreciated!

Thanks in advance

Shan

[Odie Ayaga]

@Shannon Conklin so being a newbie in and of itself isn't necessarily problematic. However, you tied that to what we call a lopsided deal: the rehab is significantly more than the purchase price. On top of that, the loan size is fairly small. It's a lot of red flags to find a lender to take on. What state is the property located in?