Investing in beautiful Utah

[Erica S.]

Hello fellow investors and professionals alike! I have completed a fix and flip recently. It went very well. The seller agreed to carry the first and a private lender funded the rehab.

I am working on my 2nd project and need to figure out the gap and rehab funding. This seller may be willing to use the equity in the property to carry a portion. I am looking for lenders and advice on how to structure this deal to cover the gap and rehab without bringing in my own funding. Anyone have any ideas or interest in providing the funding or possibly a JV?

[Erica S.]

Hi Ammon,

As requested, here's the info on the deal we have under contract:

I have a lender that will provide the purchase loan at 100%. He needs to hold $15,000 for 30 days for rehab confirmation. We need about $70,000 gap and rehab funding.

Subject Property Info:

Address: 6098 South 520 East, Murray, UT 84107

4 bdrm
1 Full + 2 3/4 baths

2nd kitchen in basement
3540 sf
Rambler/Ranch
.24 acre lot

Garage: 2 car attached + 2 car detached
Built in 1953

Based on the contractor's walk through, this is a very solid custom built home with 12" joists and a new HVAC system in 2013.
__________________________________

Numbers:

ARV: $415,000 (conservative considering the time of year we will be selling)
Purchase Price: $291,400
Rehab Budget: $50,000
Holding Cost: $2000 (4 month cushion)

Closing Cost: $24,900

Projected Profit: $25,000
__________________________________

Scope of Work (2-3 months rehab):

Will turn it into a 6 bdrm / 3 FULL Baths with option of a mother-in-law apartment 3 bed / 1 bath rental in the basement with separate entrance, laundry and their own 2 car garage.

Curb Appeal:

• Remove front fence, block walls and lamp
• Remove secondary door and finish front area
• Build a gable out with posts over the porch
• Install sprinkler system (front and back)
• Update landscaping

Interior Cosmetic Updates:

• General demo of all dated materials
• Update upstairs kitchen with open concept to living room
• Update basic kitchen downstairs
• New master, main and downstairs bathrooms
• New hardwood, tile and carpet flooring throughout
• Update fireplace up and down
• New paint, base and case throughout
• Add laundry space upstairs

If you can send your email address I will forward the comps.

Thank you,

Erica Stahura