An investor contracts to purchase a house and use his own money for the repairs.
He has the property under contract at a deep discount with an all-cash offer and a quick close. Purchase contract is for $79,500 and needs about $40,000 in repairs. The ARV (after repaired value) is estimated at $205,000. The loan is made, as the loan to value is less than 60%. Note: In this scenario the investor could have financed 100% of the repairs also and not invested the funds into the project.
More Loan Scenario's . . .
- An investor contracts to purchase a house and use his own money for the repairs.
- A new investor with very limited capital and poor credit due to a discharged bankruptcy makes an aggressive offer to a motivated seller to buy 2 duplexes in need of repairs.
- A parcel of land is under contract at $250,000 and the investor has put up $25,000 in binder money, which becomes non-refundable in 45 days.
- An investor owns a small office complex that has seasoned cash flow. He makes an all-cash offer with a quick close in 30 days to buy 3 houses with a total value of $300,000 at a contract price of $175,000 from a very motivated seller.
- An out of town seller agrees to sell a house to an investor for $45,000 simply to rid him of the property as part of an estate settlement.