Hard Money loan for Rental

[Lorenzo Hatten]

Hell all! I have a issue and I need the BP family advice! My grandmother in Law is selling her home in Charlotte, NC. The list price is $129,000 it's a TH, needs a little work inside because it's Out dated (grandmother is 87) She had a buyer that backed out yesterday, and when she informed the family she was really sad, I took this as a Sign! I'm new to the community, but by listening to BP podcasts and reading up on Hard money loans I hear a lot of investors say their first property was a blind effort turned success. I want to be as informed and knowledgeable as possible before pulling the trigger. I believe it would be a great started property for me and my fiancé! Possible rental, or Flip. She informed us if we are interested she would sell to us for $125,000. I need to know from everyone what should I be looking at to see if this deal makes sense as a possible start up financially? Also, after doing the numbers and speaking with our grandmother, if it works. What would I need to provide to a hard money/private lender to secure their financing. (Paper work, deed, property appraisal, etc) Thank you all for your help!

[Monika V.]

Why are you specifically interested in a hard money loan? It seems like your situation leaves multiple other financing options open.

The main thing I would watch out for is not getting too attached to the idea of this house before checking to make sure it's a good deal. Also, even though it's grandma's house you still have to check everything for yourself to make sure you really capture all deferred maintenance in your analysis. It's unlikely she knows the extent of all the issues.