Loan structure help

[Guillermo Nadal]

I’m finding a lot of good deals in single family homes. The prices of the houses are between 20k and 40k and repairs are between 20k to 30k depending of the size and conditions of each house.

My cash won’t support to buy and fix the houses at the speed that I’m finding properties.

I’m planning in different exits strategy but the best one is BUY AND HOLD this properties that will be pay off in 4 years by tenants paying rent.

I have the all system in place. I’m finding the properties and I have several crews that can fix the houses in 2 or 3 weeks period.

What will be the best way to leverage my cash and buy and fix as many houses as I can. Some lenders won’t touch anything below 50k.

Any help will be gladly appreciated it.

[Zach Lemaster]

@Guillermo Nadal

This would pretty much be a private or hard money lender that you would be looking to, which is the most expensive money so make sure to account for that in your calculations. Be very confident about your timeline, and account for delays. A LOC or HELOC may be a cheaper option depending on what is available to you. Also, if you are not an experienced flipper, be extremely cautious in those types of properties as there is ALWAYS unexpected rehab & delays that can put you in a bad financial position very quickly! Rehabbing or Flipping homes successfully takes some time to really perfect and nail down your systems. Many are losses on the first few, but that is part of learning the game.