OfflineToday I went to Narragansett to look at a beach house. House is about 1400 sq. End of a cul-de-sac. Ocean view. House needs total rehab. Husband died and never finished building the inside of the house. Half of the house is finished. Half is bran new construction. House will cost about 100k for rehab. House is on the market for 399k. House is assessed at 630k presently. Houses in the area sell about 700k to 800k. The house has been on the market about a week. There are 3 offers. I would like to offer 350k cash no inspections or apprasials. Close in a week. 100k rehab brings me to 450k. Even worst case I sell the property for 600k I still stand to make 150k. I could do a construction loan. But cash is king and would get me the house. How do I get the cash? I need a hard money lender that will put his name on the proper as collateral. Where can I find one of these people asap. Or does anyone have any other solutions??? I have to do this quick because scores like this move very fast in my area!
Sheri -
If you want to go the hard money way, just conduct a simple Google search for "hard money lender". They typically only cover up to 75% of the property so that leaves you with 25% to come up with. However, you can just get another hard lender loan and foot the other 25%. However, they are usually short term fixes and are due pretty quick with a lot of interest. BUT everything is negotiable.
Consider using a cash partner to fund your rehab. You can find these individuals crawling over the internet (Craigslist, Kijiji). Search for this thread for some marketing ideas: Web 2.0 Broken down into small bites!!!
You can also try to assign this property out to get some quick cash. What is your exit strategy for this property?
"You only fail when you give up. Never fail to give up"