Raising Money
Morning everyone,
Wasnt sure what category this fits in so ill ask it here.
I am trying to figure out the best route to go to get money for my first fix and flip. I do not have a deal yet and im starting my marketing for off market deals and searching the MLS with my agent. I want to be ready once a deal comes knocking.
I am looking at several strategies
1. HML - Pretty straight forward and definitely the most expensive. could be 10-15% interest + points. However without a track record it might be harder to get them to loan to me.
2. HELOC - I just bought a 500K owner occupied 4 unit building that i put 20% down. I have seen some banks that allow you to do a 85%ltv to 100%ltv heloc. This will allow me to draw anywhere from 25K -100K. Interest is between 4.5% - 9.5% based on my research.
3. Personal loan. - I just heard about this from one of the podcasts. It is essentially a loan from a peer to peer lending site (best egg, lendingclub and so on). I can get approx 35K at 6%-10% (credit is excellent).
4. Partnership - This is ideal and im working on how to approach this since i have no fix-flip track record. However if i went this route i do have approx 15k in the bank to contribute so i would have skin in the game.
Please let me know your opinions.
Thanks