Detroit, MI · Member since 2016 · 4 posts · 0 votes
hello I'm new to the whole real estate thing and was wondering would any body have and idea on how to get funding for a rehab, I bought a house in may of 2016 to live in, and came across a steal, a duplex in the Detroit, corktown area. I've gotten a couple of suggestions just want other input or suggestions.
You can Google hard money lenders in your area, though that is more for fix-and-flips due to high interest rates and it sounds like you want to buy-and-hold. You can partner with a local real estate investor - you might find a partner at your nearby REIA or here on BiggerPockets. If the property was in better condition, you might obtain bank financing (but from the condition you describe, it doesn't sound like it would qualify). I don't have any information on the seller, but seller financing is a creative way to fund a deal if you don't have any other means to finance. Most of these methods, however, require a down payment.
In short, there is no simple way to get funding for a rehab without putting some of your own cash forward or being creative. Your best bet, if this deal is a "steal", is to find an experienced rehabber/landlord and discuss working together.
I've already purchased for 12k and been offered 100k for it ,but I know with rehab would be worth around the 200- 220 range and rent is about 1400- 1750 range in the area. So I don't want to sale.
Rafael,
Sounds like a great deal. How did you pick it up?
I was in a similar situation and was able to get a 0% interest for 12 months, 20k business credit card through Chase. Depending on the size of the rehab, this may be a viable option if you're able to pay down the CC. Also, would look for contractors that use square or accept CC. If you're able to find alternative financing, I would look at those first, but it did work.
Kyle