Deal going South, advice needed

[Nicolas Redhead]

Hi,

I am working on my first deal, the idea was to get the property under contract and do a back to back close with an end buyer who could handle the repairs. We got the property under contract for 57.5k and we are trying to sell it to the end buyer for 75k. The ARV is 185k, it would need about 45k in repairs. We found a buyer who was willing to handle the project, a couple who have a few rentals under their belt, good credit, and rehab experience. Unfortunately, the buyer may have fell for a scam from a fraudulent hard money lender who promised to fund the deal 100%, and now is not coming through with the funds. We have invested heavily into this buyer, and are now in the position to do anything we can to make it happen with them. The seller and title are getting anxious because of the uncertainty. We close at the end of the month and are currently looking for a lender who is willing to fund their side of the deal. The buyers are in a good position credit wise and the deal has a lot of equity, we just need the right lender involved who can make it work by the time we close. Any advise on how to proceed? Or leads to explore? Thank you in advance for the guidence.

Nick

[JD Martin]

Can the buyer go to another HML? Do they have any equity they can borrow against on assets they already own? Those would be the two quickest avenues more or less. If they can't come up with 75k they were probably on the weak side of being a suitable buyer IMO; I know people (including yours truly) that could just buy it on a couple of credit cards.