NO MONEY DOWN LOAN EXAMPLE
You may be thinking, “I like what I’m hearing but what does a no money down loan really look like?” Well you’re in luck because below is a breakdown of a deal that will qualify for a loan with no down payment…
Let’s go through an example deal so you can see how the numbers work out. Imagine you find a run down property that needs some work in a neighborhood that has an average home value of $200k. You get the property under contract for $99,900 and after inspections you estimate rehab to cost $20,000. You conservatively tack on an extra $10,000 to cover closing costs and you’re left with the following breakdown:
- PURCHASE PRICE: $99,900
- REHAB COST: $20,000
- CLOSING COSTS: $10,000
- TOTAL COST: $129,900
Next you get an appraisal and find out that, after repairs, the house will be worth $200,000, just what you were hoping for. Cogo Capital will cover 65% of a property’s after repair value (ARV) so you’re left with the following:
- ARV: $200,000
- LOAN @ 65% ARV: $130,000
- OUT OF POCKET COST: $0
As you can see in the above scenario, if you find an undervalued property that has potential and satisfies our lending criteria there’s an opportunity to PROFIT BIG without needing to bring any money to the table!!! It can be challenging to find a deal that’s able to be snagged within 65% of the ARV but it’s not impossible. In fact, our sister company The Lee Arnold System of Real Estate Investing is dedicated to training people of all experience levels to find these deals.
We love flippers who have an eye for spotting a good deal so if that’s you we want to talk! Contact a loan officer today to discuss how you can get the funding you need!