All Forum Posts by: Sarah Bate

It does help - thanks!!

Hi all,

I just got my pre-approval letter from a hard money lender. What do I do now? They are asking for some back up for the project but what is the process typically after the pre-approval?

Thanks!!!

Whew. This is definitely an undertaking. I will take both your suggestions and hopefully I will get some positive information that will convince me I should consider this investment. Thank you George and Joseph!

Thank you Joseph! I did not do a title search so that's something I needed to hear. I will also look into the home inspection. Thanks!

Sarah

Hi all,

I am writing to ask for some advice on a property I am looking at. The property is in Groton, MA...great location. The most similar comp in the area sold for $377k in August...but the house I am looking at is a bit larger in sqft. The house I am looking at is 139k through the bank. It seems that everyone has passed up on it (it is going to auction for the SECOND time) because it has a failed septic system which costs about 25k or more to fix. Kitchen also needs to be gutted. However, I am thinking because it's a bit bigger and it's in Groton I could sell it for $399,900. What do you all think? I am going to go view it this Saturday with a contractor. But based on my preliminary research I have rounded rehab cost up to 110k. And rounded up to $50k for interest on loan, closing and holding costs, and other costs. Even at 160k for expenses selling at $399,900 would give me a profit of 100k. I am assuming this would be too good to be true so I am willing to entertain that I may have 30k more in rehab and bring down the price to $379,900 which would give me 50k profit. Seems like a no brainer right? Any advice here...thanks in advance!

Sarah