Wholesale Property
I am considering using a hard money lender to fund the purchase of wholesale properties. Is it worth getting this type of loan given the following:
Purchase price: 165k
Repairs: 25k
ARV: 350k
Also, I would need to make the payments on the property until rehab is complete. Does this sound like a good deal?
Are you the one wholesaling it or are you buying it from a wholesaler? Either way it looks like killer money.
Mitchell
I would like to purchase the property, fix it up, and then sell it, but I won't be able to sell for about a year, unless I find a lender that won't care about seasoning. I take it that this is a deal you would take?
You should also consider lease optioning it or renting it for a year or so. That way, you'll make money on both ends. How in the world did you find a deal like that ?
I was considering that option as well. Maybe refi after a year, pull out some of the equity, and l/o for about another 2 years, then sell. Sounds like a plan. It kinda just fell into my laps.
Seasoning's not necessarily an issue with selling it.
Yeah, that's what I'd do. Just get a HM loan and then try and get a conventional loan on it, maybe an ARM or something like that and then lease option it to make even more. Looks like a really good deal man.
Besides with that much of a jump on the FMV you probably will have a seasoning issue.
Peace,
Mitchell[ Edited by kingmonkey on Date 04/01/2004 ]
How's your market down in Granbury, Mitchell?
Another thing... If you're buying this from a wholesaler here in Atlanta, I'd be VERY skeptical on ANY of those numbers. Most of'em are buying in the war zones, then trying to tell you you can turn around and sell a house where there's crack houses across the street for 250k. AIN'T GONNA HAPPEN... Check out the Comps on your own, the wholesalers got appraisers that'll give them ANY number they want, and lenders that'll basically lend on that amount, but when you go to DO something with the property, you get stuck, 'cause the real world hits you. What area is the house in?
Been there, done that, got the t-shirt!!! Got ripped off!
Good luck with it!!!
I am aware of some of the number games being played in certain parts of the city. I did do comps in the area, and there were a few that sold lower and a few sold a lot higher (a $400k, $500k, even $1.0M) all within a 1 mile radius. The property is downtown Atlanta, close to Midtown and Atlanta Regional.