Originally posted by @Shawn Thom:
Hey @Josh R. , they cover purchase price + rehab minus 15% (Your down payment) plus closing costs. There are some caveats around that for smaller deals (under 100k) which I don't remember.
I'll know more about timeline next week. At the rate they are going they'll be done in 2-3 weeks BUT we have to do the plumbing tests. I think the plumbing test are going to be this weekend or Monday. Obviously the more problems found, the more time it adds. But all in all, considering we just started the 24th, we're flyin'!
How involved is the bank in 'finding problems'? Is the time being added because of the bank or because you are still doing your DD ?
Are your monthly payments interest only or PITI or ?
Is it called a construction loan as you mentioned above, or is there another name? It seemed you like you might have been referencing another loan product by using the words construction loan.
I'm very interested in as many details as you can provide me. PM me if you would like. I contacted a local bank here that advertised construction loans and they were not interested in any short term 'flip' loans.
Those are very nice terms you are getting.
