The answer is yes. I have never used a conventional loan, my lender finances 100% of purchase price, I carry the expenses of rehabbing, loan costs are less as most of the time they do not require an appraisal if I can show loan under value, such as FMV on a tax bill, origination fee is around $400, 6 month note, interest only monthly payments, 6.75-7.5% rate. Obtaining the first loan was the hardest.
Quote:
On 2005-07-19 22:58, markenssa wrote:
The answer is yes. I have never used a conventional loan, my lender finances 100% of purchase price, I carry the expenses of rehabbing, loan costs are less as most of the time they do not require an appraisal if I can show loan under value, such as FMV on a tax bill, origination fee is around $400, 6 month note, interest only monthly payments, 6.75-7.5% rate. Obtaining the first loan was the hardest.
why was obtaining the first loan the hardest.
All the time. Buying a house tomorrow for 88k that should sell for 155k when rehabbed.
88,000 purchase price
880 1% oriignation
2640 closing costs - guess at 3%
20000 rehab, taxes, utilities
5000 16% simple interest for 4 months
4650 closing cost - guess at 3%
3875 realtor fee at 2.5
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125045 total costs
155000 sales price
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29,995 profit
The answer is yes. I have never used a conventional loan, my lender finances 100% of purchase price, I carry the expenses of rehabbing, loan costs are less as most of the time they do not require an appraisal if I can show loan under value, such as FMV on a tax bill, origination fee is around $400, 6 month note, interest only monthly payments, 6.75-7.5% rate. Obtaining the first loan was the hardest.
Quote:
On 2005-07-19 22:58, markenssa wrote:
The answer is yes. I have never used a conventional loan, my lender finances 100% of purchase price, I carry the expenses of rehabbing, loan costs are less as most of the time they do not require an appraisal if I can show loan under value, such as FMV on a tax bill, origination fee is around $400, 6 month note, interest only monthly payments, 6.75-7.5% rate. Obtaining the first loan was the hardest.
why was obtaining the first loan the hardest.