OfflineHELLO FAM,
I would consider myself to have a good understanding of have wholesaling and assigning works, however, I dont think an assignments would work for this specific deal.
I will get a property under contract this week for 230k which is approx 80% market value, not terrific assigning material from an investor standpoint. The profit comes from me already lining up an end buyer with a purchase and sale agreemetn for 255k. A 20k profit.
Could I potentially assign the deal, yes. But I think this is more fit for me attempting to pull hard money or do some sort of transactional funding. The catch is my end buyer wont have his cash available for 1-2 months and transactional funding requires back to back closings. And with hard money, they tend to only lend a certain %, and I need 100% finance. Does anyone have any ideas of what I could potentially do?
Does anyone know of any hard money lenders for this deal?
Does anyone want to partner with me?
Preferrd transactional funding?
The deal is in Fort COllins CO.
Thanks
Shane
HAVE PROPERTY UNDER CONTRACT WITH END BUYER, NEED FUNDING??
Posted on: Sat, 10/08/2011 - 18:54
HAVE PROPERTY UNDER CONTRACT WITH END BUYER, NEED FUNDING??
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- by sredman
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Most hard money lenders here in Colorado would lend around $175,000 at 4 points and 12% interest. So if you sell in 2 months your money costs will be $10,500.
That is if the house appraises for $250,000 no work needed. You still need to come up with $55,000. Say a private money guy lends to you at 10% interest only. That is another $916 money costs.
Now if the buyers buys at $250,000 with no concessions made on your part. Assuming no commissions paid to any agent. Closing costs, utilities, insurance, taxes, water etc for 2 months $5000
So $250,000 sale price
-$5000 selling, holding costs
-$11,416 Money costs
- $230,000 your purchase price
= $3584 Net profit.
If you can sell within 2 months for $255,000 you will net around $8,000.
Try to get a closing in 60 days and assign to homeowner?? Then you make $25,000 if can pull off the assignment for $255,000 with no concessions to your seller. Remember the deal must pass inspection, appraisal and financing.
Your seller to pay all closing costs.
One other thing, most hard money lenders require you to have 6 months of interest payments in the bank before they loan. That is $10,500 in the bank in advance.
PM me if you need Hard Money company information
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
http://www.pinefinancialgroup.com/rehab-loans
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Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
thanks a lot for the info...