Where can I find money for a remodel?

9 Replies

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!!

@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.

@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.