Need a hard money lender near Arlington, VA

[Ali Kassam]

I put in a $350,000 offer on a home in Falls Church, VA that has an ARV of $525,000 and estimated renovation cost of $75,000. This is my first flip and I'm on the market for a hard money lender. If you or someone you know can help, please let me know.

Thanks,

Ali

[Nghi Le]

This is a very tight deal, especially for your first flip. Purchase price and rehab is 81% of ARV, which doesn't leave room for profit or for things to go wrong. Buying and selling costs already make up 10%, and hard money itself will cost between 5-10%. And that's assuming everything goes as planned and that you ran your numbers correctly.

I can help you find a loan for it, but I recommend you find another deal.  You're more likely to lose money than make it on this one.  Try to find deals that follow the 70% rule for your first deal.

Also, you mentioned another HML does 80% of ARV. Did you mean 80% of ARV or 80% loan-to-cost (purchase + rehab)? 80% of ARV would mean 1% down (since your total costs are 81% of ARV), whereas 80% LTC means 20% down. I'm guessing it's more of the latter since 80% of ARV means that lender will do 100% financing in some cases, which is very rare, especially for a 1st-timer.