Hard money loan denied

[Elizaveta Dolzhenko]

I am under contract to purchase a single family home in tampa, fl and my hard money loan got denied less than a week before scheduled closing.

I have a backup option to borough money from my father, but wanted to get advice whether I should continue with the deal.

Here are the numbers:

Purchase price: 68.5k

Arv: 110k (this is the appraised value, but not a lot of comps for this property)

Rehab est cost: 10-15k (mostly cosmetic, plus roof)

Est rent: $950-1050/month

Specs: 984 sq foot home in a good area with good school zones, built in 1958, on .6 acres of land

The reason hard money loan was denied: hm company owner did not like that the house is small and frame and not in a community.

What I intend to do with the property: fix, refinance, and rent out. I estimate my cash flow to be around 450-500 a month after mortgage, taxes, and insurance but before other expenses. 

In my area there aren't a lot of properties well under 100k that are in a safe neighborhood with good school zones, which in why to me the property has potential. However, I am a little concerned with the fact that the hmld denied the loan because they didn't like the property.

Thank you in advance for your advice!

Lisa

[John Herrick]

Borrow what you need to get the deal closed.

Evaluate adding square footage to bring house to same size as neighborhood comparables. Be careful, get good ARV comps for larger houses! smallest house in the neighborhood on land can be an attractive deal. Think outside the box!

If you need additional funds along the way or could just use more working capital, or would like to repay Dad earlier consider this:  I provide large unsecured credit lines which equate to an additional financing partner at way less than partner costs. Please contact me for details.