HOW TO MAKE PROFIT WHEN USING PRIVATE/HARD LENDER?

[Clifton Prescod]

Hey there! 

I found something that may be a good deal. The owners father passed, shes the exec/poa. They owe $165k on a reverse mort. She wants $190 to be able to move out to a new place.

Im no pro at rehab estimates but id say a good $80k/$100k is needed in rehab. the block is undergoing gentrification but she doesnt want to sell it to a typical old wig investor. The homes on the immediate block are on average valued at $363K. Homes that were sold recently averaged $160k on surrounding blocks (the particular block this home sits on is a sought after block. An investor had bought up 5 of the 13 homes on the block and resold or renting them out.

ok so, I dont have money like that but the seller wants to work with me exclusively. I really want to flip this home because I feel I could really make it great on this desirable block (maybe that the newbie in me). 

1)Do you think i should pursue this property? 

2) Should I go for a private/hard lender since I dont have the capital personally?

3) What percentage of return is good when dealing with PL/HL's?

and if you have any advice or something let me know.

[Vaughn Smith]

@Clifton Prescod I have a few questions. 

1)Where is the property?

2)Where did you get your comps from?

3) Do you have the capital to work with a hard money lender? (25% down + Reserves in an account for 3 months or more is common)

4) Do you have a team yet to help with the rehab, closing the sale etc?

Consider the answers to the questions above before you proceed, you can put the property under contract for 30/45 days but make sure you have an attorney review your contract, we live in a litigious society, try to insulate yourself as best as you can. To answer your question if you don't have the cash to purchase the property you would need to assign the contract, again make sure that the language in the contract is correct before you present it to the seller.