Hey guys, bought a nice flip house here in San Antonio CASH and have enough to fund the Reno cash as well but it's cutting it a little closer then I'm used to. Does anybody know of a lender who will fund the cost of the renovation? Or maybe a private lender? Thanks in advance.
Purchase price - 86k
Reno cost - 27k
ARV - 149k - 159k
Timeline - 6 weeks
If you already closed on the property and you own it free and clear, you should have no problem going to a HML to get your purchase price back in your hand to pay for rehab.
@Jason Hirko is a local lender who might be able to help with your project. But if you are only looking for a 27k loan, no HML is going to do a loan that small. I think about 50k would be about the min.
Caleb, I agree with @Rick Pozos in that a HML is not going to lend you only 27k. If you don't want to pay their borrowing costs or go through their qualification process, it seems to me you would want a private investor to lend you the cash for the project or partner with you. You could network at the local REIAs in San Antonio to find some or get references for some. I don't rehab properties, I only invest with guys like you, either through a loan or as a partner. But to date I've only done that in Houston. As time goes on, I'd like to get more involved in the San Antonio to Austin corridor, primarily for its high growth, but also because we plan to retire to our house in New Braunfels in the future.
Hard money and private are good, but you could also check banks for construction loans
Most HML will offer 80% of original purchase price as cash back at closing but they will also want to set up a rehab draw based on 80% of rehab cost, also. Have you considered a acquisition and rehab line of credit for future projects?
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