OfflineJust got a call from a realtor that is willing to go the extra mile every time because she knows in the long run it will come back many times over for her. Anyway, a 1700 sq ft house is about to come on the market for less than 18k. It is a manufactured home that needs about 12k in work. 3bed/two bath that will easily cover debt service. She believes even in this market it should get between 75 to 85k. The problem is I don't have a lender that will loan the money to fix it up because it is a manufactured home. This house will be gone before I know it. I tried getting in touch with the hard money lenders that the reccomended in the Gain the Edge 09 material but can't get them to call me back. Any thoughts? Thanks in advance for your help! Brad
rehab
Posted on: Mon, 08/17/2009 - 18:30
Get the house appraise and then go back to the bank and ask for loan which covers the price of house and repairs costs. For example if the subject appraised at $75,000, (ARV) then you you need to ask for a $30K loan. Eighteen thousand to purchase the property, and $12K for repairs costs. You might need to have a copy of the appraisal with you when you go to the bank to secure the loan. Good luck!
Lloyd
My fear is that by the time I make that happen the house will be long gone. The bank that is holding the property is not allowing any offer to be written with any contingencies. I'll see if I can convince them to re-consider. Thanks for your quick reply and sound advice! I'll let you know how things turn out. Brad
If the bank is not allowing any contingencies, then offer them half of what they are asking for and take it take "AS IS". For example, if they're asking for $18K, then offer them $9K. If they insist they want $18K, then tell them you'll take it ONLY IF THEY DO SOME REPAIRS. They may tell you no, but the fact of the matter is, you will never know what you get unless you ask for it. If you do get it, then lock it up for 30-45 days. Be persistent and be bold, but not over bearing! Good luck!
Lloyd
Thanks for your quick response! I'll keep you posted. Brad