house flipping: Flipping Homes Formulas - Using Hard Money Lender
- 10/07/08 02:57 PM
Buying, fixing, and reselling homes for can be extremely profitable. When cash is tight, and your only source of financing is expensive private lenders, or Hard Money rates, there are some general rules of thumb that most investors can use. Using Hard Money Lender (points for borrowing 6 point, and interest rates around 15%) ARV stands for After Repair Value, or what the home will be worth upon completion of repairs. Maximum Offer = (0.63 X ARV) - Repairs Or Maximum Offer = (63% X ARV) - Repairs Example: A house has an ARV of $100,000, but needs $35,000 in order (0 comments)