O.K....Here is the info. I got a offer accepted on a 3bd 1.5 bath that was bank owned. Property was originally listed at 85k. I purchased the property for 57k and the comps in the area are 110-115. It only needs about 10k in rehab (new kitchen, paint and baseboards). I am using a local hard money lender and my hard money fees are around 7200.00 if it takes me 4 months to rehab. My concern is they are asking for a few items that I am not familiar with.
1. Copy of the scope of work from Contractor. Since (I have construction background I was planning on doing most of the work myself(
2. Refinance Pre-Approval letter. With the current market conditions, it is not always possible to sell the property in the short term of our loan so we require everyone to provide proof that they can refinance out of our loan.
(How can a lender pre-approve a property for re-fi before it is rehabbed?)
3.Name and Phone number of the insurance agent holding your Builder's Risk and Liability Policy (is this normal? And does anyone know how much this runs?)
I plan on holding the property and doing a lease purchase because it should cash flow about 400.00 month.
I would attach my property analysis for everyone but I am not sure how...
Any help would be appreciated.