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lemeuss
456 Posts |
 Posted - 07/15/2008 : 10:01:36 AM
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Friend/Client of mine is a contractor looking to purchase and rehab Philadelphia properties that his friend's management company runs. The average on these properties is as follows...$30K purchase price, $8-10K needed to do the necessary rehabs, $85K exit value in their respective markets. Less than 50LTV if based on finished value.
I have some things going, but am interested in exploring all of my options...anyone?
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mcmoney
300 Posts |
Posted - 07/15/2008 : 10:40:45 AM
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| Who's funding these days on seller seasoning with a $30K purchase price and $10K of improvments for $85K in value? |
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JoefromPhilly
653 Posts |
Posted - 07/15/2008 : 10:54:37 AM
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I think that will be a hard sell, as far as the exit plan. Seasoning is a big issue, and I'm not sure any lender will take that kind of equity boost. Plus, where in Philly are these properties? With the typical buyer of a rehabbed property being a FTHB, they had better be able to go full doc with at least 10% down plus closing costs. When I was doing stuff like this with a former associate in Philly, we had almost no one who would qualify under today's requirements.
As far as a hard money source, try http://LifesGoodAbundance.com. The guy who runs it focuses on the Philly area. The rates and fees are about the norm, but you are dealing with a local investment fund.
- Joe |
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khoiey
1564 Posts |
Posted - 07/15/2008 : 11:36:02 AM
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Can't be done especially in this dreary market. Someone in Philly asked me about the same scenario but he is both the contractor and management company. Was these properties are mostly in SW philly?
quote:
Originally posted by lemeuss
Friend/Client of mine is a contractor looking to purchase and rehab Philadelphia properties that his friend's management company runs. The average on these properties is as follows...$30K purchase price, $8-10K needed to do the necessary rehabs, $85K exit value in their respective markets. Less than 50LTV if based on finished value.
I have some things going, but am interested in exploring all of my options...anyone?
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lemeuss
456 Posts |
Posted - 07/15/2008 : 1:21:36 PM
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quote:
Originally posted by mcmoney
Who's funding these days on seller seasoning with a $30K purchase price and $10K of improvments for $85K in value?
thats what comparable homes (once rehabbed) are going for in these respective areas
And the props may only be 85K in value, but there's 70 of them...that's a combined 3.15mil in equity when all's said and done, and a total investment of 2.8mil...if I had that kind of change laying around I'd fund the things |
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lemeuss
456 Posts |
Posted - 07/15/2008 : 1:22:46 PM
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quote:
Originally posted by JoefromPhilly
I think that will be a hard sell, as far as the exit plan. Seasoning is a big issue, and I'm not sure any lender will take that kind of equity boost. Plus, where in Philly are these properties? With the typical buyer of a rehabbed property being a FTHB, they had better be able to go full doc with at least 10% down plus closing costs. When I was doing stuff like this with a former associate in Philly, we had almost no one who would qualify under today's requirements.
As far as a hard money source, try http://LifesGoodAbundance.com. The guy who runs it focuses on the Philly area. The rates and fees are about the norm, but you are dealing with a local investment fund.
Thanks Joe, I'll take a look...I figured it would be tough to find....if it weren't I wouldn't have posted, but I'll give it a look
- Joe
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