Hard Money Loan 1st Time

[Darshil Parikh]

Hey BP friends - I am interested in purchasing a property that needs some work and want to add more sq ft. I am taking to a hard money lender, who will fund the purchase and renovation cost at 10% down payment. Points and other things still to be discussed. I have a really good contractor that can get the job done timely. Purchase $450K plus $150K in renovation and addition. ARV expected $750,000. Intent is to sell, but next option is to move in if we don't get the right price - will most likely refinance and get the cash out. I am asking experienced investors in terms of what I need to be careful about, basically what are some big items that I need to make sure of? Never done it, but I am getting a good deal and want to take a chance. I know the neighborhood really well, I live 3 blocks away and own couple rentals as well but never done a flip/remodel. Thanks

[Odie Ayaga]

There are lenders doing 0% down so the 10% doesn't surprise me, however, did they say they were willing to cover the full rehab? You're at 87% of ARV which is extremely high. Most don't go higher than 70% of ARV. How sure of this lender are you?