How to Finance

[Lorenzo Jackson]

I have a property under contract at 33k, it needs 15k in repairs and the ARV is at least 80k.

What is the best way to finance the deal? 

A) Go with a hard money lender for acquisition and rehab, then find another bank to cash out refinance

B)Use a conventional bank for acquisition, a 2nd bank for a construction loan and a third bank to cash out refinance

Has anyone actually obtained a construction loan?

Any advice or direction will be appreciated. 

Thank You

[Jeff Rabinowitz]

You may have a difficult time finding a bank to finance a $33K acquisition and an even harder time finding one to finance a $15K construction loan. In the unlikely event that you do find such a small construction loan the fees and costs may make the hard money loan look like a bargain. You will need to put some of your own money into the deal to attract any lender.