I Got A Property I Need Some Help On

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I have a property that another investor has under contract to do a short sale with the bank at 195K.

The resale in this neighborhood is easily 270K, and she wants to flip to me for 5K. It needs carpet, paint, and other cleanup not a complete remodel probably not more than $8500.00. It still has a good spread but I am wanting to fix to sell not to hold.

Is this too big of a deal for a hard money rehab loan or should I try long term financing. Anyone whit a suggestion I would appreciate it..



Thanks,

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Comments(3)

  • ray_higdon13th May, 2006

    If you can get conventional financing without a prepay and are in no hurry to close, go with conventional financing everytime
    [addsig]

  • bgrossnickle13th May, 2006

    200k is not too big for hard money. And you will probably have to use hard money as when the short sell is approved, they will then expect you to close quickly - depending on what the Investor has told the loss mitigation reps.

    With little rehab and a decent market (meaning quick sell), hard money can even be cheaper than a conventional loan - of course depending on the terms of your hard money loan.

  • jimandlacy13th May, 2006

    Try tapping on the surrounding tiles. A ceramic tile that has come up from the set will have a different (hollow, tinny) sound. I use the handle of a long screwdriver.
    Also, a loose tile will usually have cracked grout around it.

    Jim[ Edited by jimandlacy on Date 05/13/2006 ]

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