Updated almost 2 years ago on . Most recent reply
Inputs on how to fund first flip
The more I read the more difficult it becomes to figure out a funding method. There are so many ways to get it done. I just want some inputs and advice.
I will be flipping in Jacksonville, FL. I understand there is no “right” way to do it but my plan was to get hard money for the purchase of the property and use a heloc for the renovations. Side note: I have roughly 120k in home equity.
Is it possible to use a heloc on my primary residence for renovations on a property that I buy under my LLC? Am I better off not using my LLC and just getting hard money under just myself? Should I use hard money for purchase and repairs? I have so many questions. Thanks in advance.
Most Popular Reply
Hi Rob,
If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money. A hard/private money will allow you to fund both the purchase and the rehab, so if the HELOC is not sufficient it would make sense to use this. And yes, you should be able to use the HELOC for the renovation.