Chesapeake Virginia Hard Money Loan
This Chesapeake Virginia property selling for an incredibly low price proved to be a phenomenal deal! Frances H. found an adorable cottage home in a highly-desirable Chesapeake neighborhood. The area had a reputation for kind neighbors and boasted a safe environment. Frances knew that rehabbing and reselling this home would bring in a tidy profit. She brought the deal to Do Hard Money and we funded 100% of the property purchase price. We also funded 37% of the rehab costs, with Frances only needing $10k cash-to-close. Frances snagged the property for only $65,000 and went straight to work on the rehab plans.
Frances executed a well-thought-out rehab for this property. First, she completely renovated the kitchen, adding granite counter tops and stainless steel appliances. Frances also refinished the hard wood flooring and replaced all of the carpets throughout the property. Finally, upon completion of the rehab, Frances sold the property and gained an overall estimated profit of $64,201!
This deal ended up with a phenomenal projected profit, even though the borrower had to bring some cash-to-close. Obtaining a Virginia hard money loan for the property was a crucial step to realizing the investment dream for Frances, one of our excellent, motivated members from VA.
Sometimes borrowers get discouraged when a deal requires cash to close. Many assume every good deal will qualify for 100% financing. However, this is not always the case. Not qualifying for 100% financing doesn’t make the deal a bad one or less profitable; it just needs different terms in order to complete it. The borrower has many options to obtain 100% financing. First, they could choose to wholesale the deal, passing it on to an investor with more capital. Second, they can take advantage of gap financing to make a deal qualify for 100% financing. You always want to look at the totality of the deal and explore all your options.