Where can I find money for a remodel?

Where can I find money for a remodel?

Member since 2019 · 19 posts · 4 votes

I have found a house that I would like to bid on at auction and use the BRRRR strategy. I think I can buy it for $150k and the ARV once fixed up would be around $320k. We can afford to buy it using our 2 heloc loans. However, we won't have money to do the remodel right away. I'm looking for suggestions on how to finance a remodel after purchasing the property with our own money.

In addition, we have planned to be out of the country for the next 4 months, so if we bought it at auction on Monday, we would not start renovations for another 4-5 months. For this reason, we don’t think it’s the right move to use a hard money lender for purchase and remodel because of our slow start to beginning the remodel. I’d love any feedback on ideas to finance the remodel. TIA!!

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New to Real Estate · Alexandria, VA · Member since 2018 · 9 posts · 1 vote
6y

Why can't you wait to get your HML after you return and just secure the property using the HELOC?

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  • Rental Property Investor · Lake Forest, CA · Member since 2018 · 27 posts · 9 votes
    6y

    401k loan. Withdraw roth ira contributions. Private family loan.

  • New to Real Estate · Alexandria, VA · Member since 2018 · 9 posts · 1 vote
    6y

    Why can't you wait to get your HML after you return and just secure the property using the HELOC?

  • Ryan BlakePro Member
    Lender · TX · Member since 2018 · 936 posts · 713 votes
    6y

    @Eduardo Conde is probably on to something. @Mckenzie Mckean if it is really that good of a deal then buy right now with the cash you have access to and when you return take a note out on it using hard money. Most hard money will want to lend a minimum of $50k but it should keep your interest payments on the deal lower.

  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Mckenzie Mckean

    You might want to try a construction loan.  Depending on the extent of the remodel and the amount of the loan, this might be an option.  The advantage is you only pay interest on the amount of the draws, not the entire loan amount.  You’ll need pretty good credit.   

  • Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    Similar to above you can do a hard money refi when you're ready to get some of your money out as well as the rehab money

  • Member since 2019 · 19 posts · 4 votes
    6y

    @Eduardo Conde thank you for sharing his insight! Definitely going to think about this one.

  • Member since 2019 · 19 posts · 4 votes
    6y

    @Ryan Blake thank you for sharing his insight. You make a great point.

  • Member since 2019 · 19 posts · 4 votes
    6y

    @Kenneth Garrett thank you for sharing his insight! Definitely going to think about this one.

  • Member since 2019 · 19 posts · 4 votes
    6y

    @Odie Ayaga thank you for sharing his insight! Definitely going to think about this one.

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