Graham Lemly
Financing Strategies for house I want - Hard Money, Rehab or Conventional?
4 January 2025 | 1 reply
Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?
Todd Douglas
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Investment Info:Single-family residence fix & flip investment.
Wade Wisner
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I am considering moving back as I have family there and if so would plan to look for fix-n-flips to invest in.
Jonathan Baptiste
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The only issue I've had is a small period where the laundry pods would always be empty at turnover.
Sam Dunlop
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I am looking to purchase a fix and flip in Daytona Beach, Fl.
Marc Shin
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We do fix/replace things just not these ice makers.
Aaron Provencal
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Investment Info:Single-family residence fix & flip investment.
Matt Meier
Seeking Short-Term Financing Options for Renovation Property
9 January 2025 | 16 replies
Your issue more so is the seasoning period for the refinance is what it sounds like.
Jaron Jackson
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10 January 2025 | 8 replies
It's always hard to fix things after closing, but you should try anyway.