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Updated over 18 years ago,
Anyone had any success getting non-doc rehab loan
I'm curious if anyone has had any experience working with hard money lenders that offer non-doc loans for rehabs?
I have had no verifable income since 2004 but do have have a sizeable amount of money in the bank (50k+). I understand that non-doc loans typically cost more upfront as well as being hit by more points than usual as well as the getting the worst interest rates around.
I'm trying to get into REI in my area and there are several foreclosed properties that are coming up for auction at the courthouse that have a good amount of equity in them. One of the more expensive homes in my area for auction will probably go for about 160k at the auction. It should retail for about 230k according to recent sales.
I ran some numbers for worst case scenario and there is still a sizeable profit. Even with 10 points (nearly 20k for purchasing fees), carrying the property for 60 days at 18% interest, loan purchase fees, 5k in repair (probably overkill considering the house is less than 2 years old and in outstanding condition from the exterior) and selling fees (6%) I could still stand to profit about 21k.
Anyhow getting back to my question ...
Does anyone have any experience getting non-doc loans for rehabs from hard money lenders to be used to purchase foreclosed properties? Thanks.