help with hard money leading on flip numbers

[Jarred Watley]

Hello! BP family need help on flip deal numbers. I'm going through a hard money lender. The purchase price of the property is at 55,000$.Cost of repairs Max 25,000(I always go with higher numbers could go way lower) ARV through the hard money lender is at 89,000$ ( consulted with a real estate agent and his broker they came up with 100- 110,000$ arv) hard money lender wants $20,300 for closing cost. Thoughts on deal ??

[Sean Blomquist]

@Jarred Watley based on the HML's ARV, this isn't a good deal at all. If you are looking at 80K to buy and fix, with an end value of 89K, you won't make any money. In fact, you would lose money for sure.

If the ARV truly is 110K, then the deal isn't bad. If the ARV is 100K, it is too tight in my opinion. Anything at 80%+ (purchase + repairs / ARV) isn't going to make you money using HML.

The bigger question should be how did the HML come up with only 89K and your other adviser's are coming up with something much higher?

Good luck