"I’ve been seeing a lot of investors struggle to close deals because they’re tying up too much cash upfront. One strategy I’ve seen work well is using high-leverage financing to cover not just the purchase price, but also the rehab costs.
For example, I recently worked on a project where the investor secured funding for 100% of the purchase + renovation. They were able to complete the flip without using any of their own money, and still hit their target ROI.
I’m curious — for those of you doing fix & flips, fix & holds, or construction projects, what kind of financing terms have you found most helpful? Are you going short-term, long-term, or mixing strategies?
I've gone this route several times using bridge money to acquire my buildings usually around 70% ltv and they would fund 100% of the initial rehab scope. I refi out of that in less than two years but it definitely helps with less money upfront. However the burn rate is considerably high, really needs to be considered well when underwriting and keep a close eye on during the value add stage.