Paid cash for house $142k looking to cash out and rehab

12 Replies

Bought a house in a great neighborhood in New Orleans. We paid $142k for it all cash. Started a new company and put the house in that company. We have owned it for almost 60 days. Looking to pull some cash out to rehab. What is the best way to do this? Only look to hold another 4 months or so. Called my guy here in New Orleans but having a real difficult because it is under a company name, always done it personally never under a company name. Can anyone help?

Thanks

Adam

Get a heloc or try crowdfunding.

What crowdfunding sites are best for real estate?

Thanks

Adam

Originally posted by @Adam Vodanovich:

What crowdfunding sites are best for real estate?

Thanks

Adam

 You could go the heloc route but that would most likely necessitate a appraisal, other wasted fees.

Have you looked into a unsecured business line of credit? Basically like having a high limit credit card with no annual fees and very low interest rates "Around 5% IIRC". It can get expensive doing a HELOC every time you have a rehab because it closes out when you sell the property, where as the ULOC just gets paid off at closing and is still active and ready for the next deal.

That is  a great idea  but have a few questions:

1) This is a brand new company 2 months old

2) Do you have anyone you recommend?

Thanks


Adam

With the home being in a new holding company "LLC I presume?" it's probably better to loan under your personal name. Either way the lender is going to want verifiable income.

My Line is through Hancock Bank.  I'm not sure if they operate in Louisiana, but they were very accommodating and easy to work with.  

I have done the same thing in Shreveport.  I will give a brief explanation of how I structured when I get to my computer in a little bit. Also, fun fact... the lender who guided me through the process initially now lives in New Orleans and does the same thing with a different company. 

MF 

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I've invested in a few dozen crowdfunding projects and there are about 6 quality sites out there.  However, Crowdfunding will only work for the experienced developer.  The portals & investors will not consider an investment if the developer is not experienced with a good to great track record.  I can't imagine getting any funding on the first 5 or so projects through a crwodfunding site.  (At least not one I would use)

Mark Robertson

A thread based on a question I asked that might be of help: Search "Best Bets for Portfolio Loans"... This might give a little insight of my experience. 

Maybe...Maybe not

MF

@Adam Vodanovich  ... I sent a private mesage with details of the lender I've used. Please let me know if you didn't get it and I will send again. 

Have a great day!

Go to a local bank and do a commercial/portfolio loan on it.

They won't care how long the business as been in place. You're going to be responsible for personally guaranteeing the loan anyway.

I agree with @Mike H.  ... you will have to personally guarantee any loan. They are going to base the approval on how they feel about you and the numbers for this particular project.

Portfolio or Commercial Lending is about RELATIONSHIPS!!! Develop a strong relationsihp with a lender and they will open many doors. 

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