Updated about 10 years ago on . Most recent reply
2nd Mortgage Loan
HI all,
I am looking to lend on a high end flip, looking for your input.
Property is a Million + home on waterfront IN Chestemere, Alberta.
As is value based on an independent appraisal 2 weeks ago is 1.03 Million. Renovated ARV after renovations are complete is 1.26 Million. The appraisal has noted and included reductions in home value (approx 70K) based on the frothy market of the past few months.
The purchase price inclusive of rehab costs for person doing the flip is 1 Million. He has already coordinated and found an end buyer who will buy the property upon conclusion of the flip.
I know this borrower personally, and has delivered on other projects/investments before.
Term of the loan is 4 months, any idea what I should charge for this kind of project, asking 70,000K to help with the renovation costs. Would you do this deal?
Ram