Chicago, IL · Member since 2014 · 12 posts · 0 votes
I recently inherited a 4-unit apartment building free and clear. The property needs to be renovated to achieve maxium cash flow. My credit is not good...any advice would be appreciated.
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
9y
@Kylann Griffin hard money lenders would probably loan you on that all day long because they'd be at a very low LTV. Private money would be even better because it would be less expensive.
Do you have any experience doing rehabs? If not you might just consider selling it to a local investor and let them do it. You're the 'motivated seller' they are all looking for.
You can look on BP for investors in your local area and/or go to a local real estate investor meetup near you and find some. Take your time, find at least three of them and make them all submit their highest and best offer :)
If you want to do it yourself though you can also find lenders at both of the same places, here on BP and at local rei groups. You will make more money from it but it will be more of a hassle. But if you're wanting to get into rei anyway that may be a good way to go.
Yet a third way is to find a local investor and offer to split the profits with them 50/50 either selling or holding it. They bring the cash and knowledge, you bring the property and get to learn.
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
9y
Have you tried traditional banks? If you own it free and clear and are just trying to remodel it they may lend on it, especially if the Loan to value is 60% or less. The other option may be a line of credit. I would avoid hard money unless it is 100% necessary. Before doing that consider bringing in a sponsor for the loan. Use their credit as a co-signer and then give them a small % of the equity - maybe 5-10%