Borrower asked for a bridge loan/ 2nd lien. I asked to see paperwork for 1st lien. Came back to say HML requesting more liquidity, so now they want me to partner with them on this flip.
I am able to front the cash needed by the HML. What is usual percentage if I partner on the flip.
There is an outstanding loan with their borrower ($25k) on another flip.
PP: $272,500
Rehab: $90k
ARV: $480k+
Funds needed for 4-6 months
I had a guy turn in a loan application yesterday where he thought that laying down some LVP flooring and paint was going to add a hundred and fifty grand to the value of a normal ranch. home. I'm seeing this more and more everyday now, I need to find a faster way to check the ARV at the initial intake stage without doing a BPO on every file. Typical AVMs from Zillow or Redfin are no good because they don't take into consideration repairs needed. I have started using the addresses in HomesageAI to get an idea of the range of ARV based on local comparables that had similar work done. It helps me dismiss the out of control deals I will never fund right then without wasting any time submitting them to underwriting. What type of platforms are you guys using to keep your borrowers honest? I want to keep the good deals flowing while minimizing my risk.