Leo Tolstoy said: “Happy families are all alike; every unhappy family is unhappy in its own way.” As a hard money lender with over twelve years of experience, allow me to wax poetic about my area of expertise. All successful rehab transactions are alike; every unsuccessful is unsuccessful in its own way. Today I want to share a cautionary tale of how title issues after a foreclosure auction can impact a deal.
48 Michael Ct Gaithersburg MD 20877 Offered at $150,000 Condo fee: $293 Rental Income: $1,600+ The only four-bedroom condo in the subdivision! Year built: 1973 Property type: condo/townhouse Levels: 2 levels Living area: 1,365 Assigned parking and plenty of visitors Bedrooms: 4 Bathrooms: 2 ½ CALL OUR SENIOR UNDERWRITER MELISSA FOR DETAILS. 240.436.2340 […]
Gwynns Falls Pkwy, Baltimore, MD 21216 With questions, please call Melissa or Kyle at 240.436.2340.
This article is a continuation of our series on increasing your hard money rehab ROI. In the previous installment, we’ve discussed ways to strategically allocate your hard money rehab dollars to the areas that have the most impact on your sales price. Today, we will be tackling additional strategies. As a hard money lender, I’ve seen many of our experienced borrowers make their rehabs look more expensive than they actually are by getting the right materials and playing with modern design trends. Here are three best tricks of the trade to give you the bang for your rehab buck.
The key to a successful rehab is to control your costs. That doesn’t mean, however, that you should use the cheapest materials. The trick is to think wisely and choose when to spend your rehab money and when to go with a budget option. As a hard money lender, I can testify that in our business it’s all about ROI. The goal is to create the most upscale look-and-feel for your property while keeping your costs down. Our most successful clients do so by concentrating their rehab money in strategic areas, using the right materials to get the most bang for the buck and by simply displaying good taste. Let’s unpack each of these recommendations.
As a hard money lender, I want you to be aware of a disturbing trend that I’ve seen with many of our own properties. This trend is for buyers to pick your property apart and use the home inspection to renegotiate the price. You need to be aware – and be weary – of buyers who are fishing for a bargain and not emotionally vested in the transaction. They use the home inspection as a tool to renegotiate the price you’ve already agreed on. They demand more and more, and are ready to walk away from the contract if you don’t agree to meet their demands. As a hard money lender, I have several suggestions on how to handle such situations.