Maximizing our reno budget

1 Reply

Hi everyone! My partner and I just got a house under contract in Denver for $500k and are looking forward to getting started on renos! Our strategy is a fix and flip and we're fairly confident we can be in and out in 90-120 days - still scoping the reno timeline though.

A question for this group: the down payment really killed us, and so we're looking for creative ways to fund the renos and stretch our budget. We're looking at $50-65,000, and given the short timeline, we're OK with getting a construction loan, or even a line of credit.

Any tips for us? Supply companies or contractors that may do net 90 day accounts, hard money lenders or business loans that would do short term loans, etc etc etc.

Thanks!

@Beth Hickey my suggestion is to get the funds lined up ahead of time. If you are buying a $500K house I seriously doubt you will be in and out in 90 days. The time on market for that price point is over 60 days. In addition to that you would have another 30-45 days to close. If you are short on funds now, what happens if it ends up taking 6 months? What if your reno budget is too low? 

The primary source of funds for your kind of situation is friends and family. If you have lots of equity in another property then you could leverage that through a hard money lender. Any loans from institutions will take you longer to get a "no" from than you likely have in your contract. Forget business loans unless you have a track record, proven history, and a previous banking relationship with the bank for that business.

It really sounds like you are under funded and should get out of your contract and get the money lined up before you put another property under contract.