ISO Private Lender for Live-in Flip, Rochester, NY... 30% COC

[Pete Fiannaca]

Hello BP -

I'll keep this as concise as possible. Please feel free to DM for additional info.

Wonderful opportunity (foreclosure) just popped up in an area that I invest in (Rochester, NY). It is a single family home, currently listed for $59K with an easy ARV of $140-$145K. The property is only open to owner occupant bids for the next 14 days and I am in a position where I would be able to take occupancy of the property and reside in it for 1 year to satisfy the sale requirements. Gives me a leg up on getting an offer in there before most local investors. All offers must be cash only.

Funds are tight on my end as I recently purchased a 3-unit across town that required quite a bit of rehab, so I'm directing most of my available assets in that direction. 

I'm looking for a private money partner who is either interested in one of two scenarios...

Option 1) Straight private loan with fixed terms for repayment. Looking for roughly $85K to cover acquisition and rehab. Could offer 12%, amortized over 30 years, interest only payments, with a balloon after 12-18 months. No pre-payment penalty after 9 months. 

Option 2) Someone willing to loan the $85K for acquisition and rehab at 0% and 6 months no payments. I would put a mortgage on the property, after the 6-month seasoning, based on the new appraised value and repay the $85K, plus offer a 50/50 split on any excess over the $85K. I have a lender on board that offers 95% LTV with no PMI. If the property appraises at $140K, I'd put a mortgage on it for $133K (95%), leaving the difference of $48K ($133K - $85K). A 50/50 split would yield, roughly $24K per person. That's nearly a 30% COC return with a timeline of 180 days.

Option 2 clearly assumes more, but offers a higher ceiling in half the time. Option 1 is a bit more standard and offers a solid 12% gain. 

Shortest Bio Ever: I'm a Rochester, NY, local with considerable knowledge of suburban neighborhoods surrounding the city. Investing in RE for the last few years, and owner of a small portfolio of <10 units across 3 properties). 

Let's chat! Looking forward to making some money together! Hoping this could turn into a successful long-term lending relationship when this goes well. 

-Pete