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Updated almost 9 years ago on . Most recent reply
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Found a great vacation deal- but need some finance thoughts
So here is a bit of context. This is a quadraplex in a beach community in Connecticut, and it has been vacant for a long time period (read years). Due to this factor I don't think that conventional finance will touch the deal. Knowing this- I made sure to have my realtor @Michael Noto reach out ahead of time to the sellers realtor. After being assured they would want to provide owner financing if there was an attractive offer- they came back 10 days later with a "we love the offer but we are not sure on the owner note". As I usually do value add realty- I do have enough cash to renovate the property. The current offer is a 220,000 with the financing built in (10% down and I cover realtor commision). The property will take 80,000 all in to renovate to my standards. This is a 3 season property with the intention of AirBNB , VRBO, or weekly rentals.
What are you thoughts?
1) Get a private equity backer?
2) Work a hard money deal, with a refinance at the end (and lower my offer).
Any thoughts appreciated!
Cheers!
Bill
Most Popular Reply
If you have enough down payment using a Hard Money Lender is a great option. Some programs these days have interest rates down in the 7.99% range.
FYI, I personally have vacation rentals in Fort Lauderdale and Palm Springs. Nobody will bring you more inquiries than VRBO & Homeaway. Airbnb holds on to the rental money until after the client arrives......just what you don't want.