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Updated about 8 years ago on . Most recent reply
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Transactional Funding or Hard Money?
Hello,
I'm recently gotten a property under contract at $80,000 with an ARV of $110,000, it needs very minimal repairs (paint, carpet, etc.). Furthermore, I've found a (traditional) buyer who's highly interested in the property and agreed to enter contract with me at $95,000.
I am trying to figure out the best way to bridge the gap between the seller and my buyer. I know that if the buyer was cash, I'd double close this one and be done. However, being that the buyer is traditional, I don't think I'll be able to use "same-day" transactional funding. Should I be persuing a hard-money option for the 30 days or so it will take my buyer to close? Obviously I could just assign my PA with the seller, but then I'd have to disclose the assignment fee, which I'm not inclined to do in this case for obvious reasons.
Can somebody here offer some advice on what'd they'd do / have done in a situation like this? I'm also in need of a lender who is in between the "same-day" and "hard-money" areas and would be willing to lend to bridge this gap, either local or national, if anybody has suggestions.
I'm in Albuquerque, New Mexico if that's relevant...
Thanks for any advice!! :)
Isaac
Most Popular Reply
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@David TorresThanks for the response. Buyer isn't FHA in this case so anti-flipping shouldn't be a problem on that end. We'd definitely be interesting in chatting about your local funding sources, I'll send you a PM to get your phone #. We're looking to have this one at a conservative 73% LTV with a contract already in place and large buyer escrow. Logic says it shouldn't be too difficult, but if there any other suggestions, all's much appreciated.
IJR