Has anyone had any luck with private lender's issuing a line of credit. I want to buy some properties at a tax foreclosure which requires full payment three days after auction closes. I know I can't get a Fix and Flip loan in that short of a time frame, I was hoping to find a Private Lender to finance the property until I got a rehab loan, but so far have been unlucky. My thought would be to get a line of credit to buy three or four of the properties to flip, then finance with a rehab loan and cash out the private lender. Anyone have thoughts on doing this or has anyone done something similar?
I do this for clients for years... you have to find someone who knows and trusts you and you should have additional collateral.. if you have limited funds or limited financial statement ... then it will be family and friends.
I had significant lines with my banks to do these .. but again qualifying for them is something of a financial challenge.
so you need to be realistic.
if you have a good balance sheet.. plenty of cash and assets you may be able to do this with someone you do not personally know. if your starting out.. have weak balance sheet and no real cash.. then I would say be very difficult, unless as stated friends and family.
I don't think being unlucky is why you haven't been able to secure financing. It's more likely due to the issues Jay mentioned above.
It's a catch 22. Often times you have to have money to borrow money, and you have to have a track record of doing deals before someone will give you money to do deals. Perseverance, networking, and sales skills are going to be factors in the beginning.
Between equity in house, savings and investments I have about 85k I can work with. That's enough to get me one property at the auction outright, I would just like to able to leverage that to be able to get one or two more. My ultimate goal would be to use proceeds from the auction properties to finance multi family purchases. I'll still go and see about snagging one to get everything started.