Updated almost 7 years ago on . Most recent reply
Lending For First Rehabb/Flip
My wife and I have been discussing taking on a flip sometime in the near future if possible. How does the lending process go if I don't have enough capital to purchase it with cash? Let's say I found a deal to where all the calculations work out as a good flip. How would I go about trying to get funding to purchase the house and the cost of the rehab? I know there is hard money lenders but is there other ways to go about this through a mortgage lender? Example: If the purchase price of the home is $50K and total rehab, holding cost, closing cost, realtor fees, etc amount to $40K with a ARV of $175K - $185K can I get a loan to cover the cost of purchasing the home and funding the rehab? My best friends mother works for a bank and is a home lender who has been in the business for a very long time. I plan on getting in contact with her to discuss any options I may have but trying to get as much info as possible before reaching out to her. Any info and advice would be much appreciated. Thanks.