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Updated about 4 years ago,
Using a private lender for a down payment
Hello everyone! I've found a deal in my area where the home is being sold for $85K, but as it sits it is worth $126K so even before repairs it's got $41K in equity in it. It could use about $40K in repairs. So that would bring the total hard money loan to $125K and the ARV of the home to be $161K. From my research homes in the area, once rehabbed can sell for $180K-$200K I'd feel comfortable listing this home at $180K so before taxes that means a $55K profit..I'm young and eager to get started so I'm wondering would it be possible to find a private lender to cover the down payment on the loan, pay them back + cut them in on the final profits?