Amarillo, TX · Member since 2014 · 28 posts · 6 votes
Hey guys,
I found a house on the East Coast that I can purchase for $150k. Comps are looking to be around $280k. It is a short sale. This seems to be a great opportunity, but I'm not quite sure how to fund this.
Initially, I looked into a 203(k) to find funding for a rehab. Everything seemed okay, but the 203(k) requires the homeowner to live on the property for 1 year and 1 day. We are planning to make this a 2-3 month flip, so the 203(k) is out.
We've created an LLC, and are looking to get funding through the corporation itself. Is private/community banks the best way to get the funding at this point? Or am I missing something here?
Real Estate Agent · Buford, GA · Member since 2014 · 21 posts · 9 votes
11y
I know my mentor uses a private hard money loan from an investor he met at a local REI meet up. Try networking in your local area as well as the marketplace on BP.
Baltimore, MD · Member since 2015 · 301 posts · 82 votes
11y
you might want to check with your lender, or a lender, about that 1 year 1 day requirement. I just back from talking to my lender (i am going through a 203k loan right now) and she expects me to refi 4-6 months down the road to get a better rate and to remove the mortgage insurance.
Short sale could be a mess to deal with. make sure your agent knows what they are doing.