How Do The HML Deal Work...(m)
I have a property that I'm really interested in acquiring. The asking price is 154,000 and it is bank owned. The listing agent did devulge to me that it has been on the market for 5-6mo. I asked why so long and he told me that initially it was overpriced. I asked is there any damage to the property and he told me that the previous owner started doing things to improve the property and had a contractor start drywalling, the contractor went out of business which left the owner screwed.
So the property probably needs alot of drywall done. I want to go the HML route but don't really know how it works. Can someone with some HML experience advise me? Also if I can walk in and make an offer with cash, what would be a good offer to make, mind you, the owner had also started work on a garage so the driveway needs work because he had put in a two car garage and close off the one car attached garage. That space will also need to be re-bricked to match the www.house.The houses in the area over the past year have sold for 179-190,000.
What do you guys think? Help!!!
I think I can really make a good profit off this, just need a little guidance.
Thank you guys,
quinn
Usually, a HML will want to check your credit as part of their pre qual process. If that looks good, they want to see if the house meets their LTV criteria. If so, they will fund the deal, but you have to find out exactly how they work. Every HML works differently. SOme want you to have your own money in the deal. SOme of them release the rehab funds in draws instead of all at once. Of course you know that the interest rate will be high, but thats just the cost of doing business with them. If you ask me, HML are starting to act like banks to me. They are not as easy to work with (the majority) as they used to be. They will still look at your credit , income, tax returns and lord knows what else. I wish you well in your real estate career.
P.S. if its been on the market to long, I would make them a less conservative offer. $80,000 is a good starting point. The worst they can tell you is no. Its best to start off low than high. You never know!
Yipes, thanks for the input.
Come on guys, I know there are others with experience. I need as much info as possible to make an informed decision. Besides that, I don't want to sound like a putz when I talk to them
Thanks everybody