Hi BP!
There is a flip on the market that my client and I are looking at. We LOVE the potential, and have a hard money lender lined up. Unfortunately, our money is tied up with other projects right now, and the lender requires 15% down. My client is a GC and recently finished a 160k flip for me, and is currently doing a 200k flip for himself (so he has experience with this level of rehab!)
It is 6,000 SF house overlooking Chuckanut Drive, Chuckanut Bay, and parts of Canada off in the distance. Its a 4 bed home (each bed with its own on-suite) with 6+ baths. Home is constructed using steel beams and walls and is SOLID. Home was built by the original owner and all permits are still active. He just can't finish due to health and family issues.
Home is listed for 799k, but we think we can get it for 700k, and will try for 650k. We plan on 250k of major work, 35k in finishes, 10k in design and staging, and 5k in advertising and marketing when we go to sell.
Homes in the 3-4k SF range are selling for 1.2 to 1.5 million. A couple 5k homes sold for 1.7-1.8 million. We are running our numbers based off a 1.5m ARV, but plan to list for 1.7-1.8.
In order to do this, my client needs a private partner to come in with the down payment and holding costs. This loan would total 220k. This would be a balloon loan, due at selling of the property (with a possible extension) with a competitive interest rate. Plan is to hold the property at least a year, 6 months for rehab, 6 months to sell, with the understanding that we may be on market a bit longer. This loan would be secured with a 2nd position lien against the property, with a legal contract to be written up to all party's satisfaction. Client will be coming in with money for the down too, just isn't able to do all of it at this time (he could in 3 months, but we want to get this before then!)
If you're interested, or know someone else who may be, shoot me a message.
