Here in Minnesota we've been working with many property investors who are looking to buy bank owned homes that need repairs. These "hard money" loans surprisingly are not hard to get. Some lenders see an opportunity to be an advocate of helping clean up neighborhoods. We are working with a variety of lenders that welcome these situations and in most cases are eager find ways to get these deals done. Give me and team a call if you're having trouble placing these "out of the box" loans.
The basic requirements are as follows:
- 20% down (20% of Sworn Construction Statement + Purchase Price)
- Down payment becomes a draw that when drawn becomes part of the lien
- Purchase Agreement
- 2 years biz + personal returns
- Sworn Construction Statement from a contractor hired to do the work (please request if you don't have one)
- DU findings (if you're able to write the take out loan once construction is completed - if not I can)
The above items are basic requirements for all re-hab construction loans. Some loans require more documentation. Send me an email if you have any questions about this unique program.
Sincerely,
Matt Bartlett
Commercial Loan Broker
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