Philadelphia, PA · Member since 2019 · 11 posts · 1 vote
I have a partner who owns a small community church in South Philadelphia probably the best up and coming part of the city. Now I'm trying to figure out should we pull the rehab money from HELOC or an outside source then cash out refi and break down the profits.
Real Estate Broker · Philadelphia, PA · Member since 2014 · 159 posts · 108 votes
7y
@Ante Bolling Either option could work, you'll have to run the numbers in both scenarios and see. Without knowing anything about the deal; generally I'd say hard money will be more expensive than a HELOC. Maybe use the HELOC as a large down payment toward a low-leverage bridge loan?
I would also consider just selling to another developer and taking the quick profits; with the market as hot as it is, there are a lot of developers & outside investors willing to pay top-dollar for off-market development deals in Philly.