The plan my partner and I have is to use a wholesaler to find a distressed single family home with an owner who is willing to do seller financing. However, we will only consider a property if it is priced at 70% of the ARV minus the cost of the rehab, is in a good location, and as long as seller financing is available. Once the down payment is made (partner and I will cover the down payment with our savings) and the property is bought, we will then use a hard money lender to obtain a loan and use that loan to rehab the house. Once the property is brought up to or close to its estimated ARV, we will then put the house on the market and hopefully sell it at or near its ARV. If the property does not sell soon after the rehab is complete, we will rent it out so that we have supplemental income to cover the cost of the loans from the hard money lender and the original seller. Once market conditions have improved and demand is higher, we will try to sell it once more.
Is this a solid plan? Is finding a seller who will do seller financing a realistic option? Is using a hard money lender to rehab the house a good idea? Would it be too difficult to turn it into a rental and try to sell it? Are my criteria too strict or lenient? How would I go about finding a hard money lender or other private investor? Any suggestions, advice, or critiques are welcome!
Thanks
Jared
