Considering hard money for my first deal

[Josh Longtin]

After a couple of years of reading, listening, calculating deal after deal scenarios, I am ready to make my jump. I have found a property that I believe to be a profitable, and manageable first venture for me.

Short version is, the SFR was purchased by a family member last year to avoid foreclosure. Owner spent a good chunk of change on beginning to rehab the property before having a fallout with the contractor. The rehab is 60% complete, and there is roughly 8k worth of material left on site as part of the deal.

She is now looking to cut her losses.

Asking 140k. My gut is to offer 120, and cap at 130. My itemized rehab budget is 26k. I would aim for a 6 month turn on this deal.

Lots of sweat equity necessary, but no big ticket items. In fact, the majority of work would be done by myself and a close friend who is a GC. Ultimately all in for 160k, list for 239k as that is what comps are in that neighborhood.

I have a little cash, but not likely to get a great deal on a traditional mortgage. I am strongly considering hard money on this project. Does anyone have any insight or advice? I am located in central massachusetts and would prefer a local lender.

Please and thanks!!

[Lien Vuong]

Get hard money will be very reasonable to do esp in this lower price point. Do you have at least some $ down for the HML though? They will want proof you have some experience and that you can get the ARV you're looking for. How did you get that number? They will ask for a thorough scope of work for the project also.

You should be able to find some lenders on here - RCN or Conquest are Boston based, they could fund this.