You'll need to come up with the $5K from somewhere @Lance Queen . You should ask the bank first if they can provide additional funding, but be prepared to explain what happened with documentation to support it.
Originally posted by @Lance Queen :
Hey everyone I’m working on a house flip and ran short of money. I paid cash for the house (approximately $15,000) and then took out a loan from my bank for $20,000. The ARV is $75,000. We ran into some unforeseen termite damage and other issues that put a squeeze on our budget. The house is almost finished but won’t qualify for FHA or VA financing due to it still needs a roof. Just wondering if I should try and go back to the bank for addional funding or should look else where. I need $5000 to finish and correct the issues.
If it's an SFR you could technically get a HomeStyle reno loan on it, but that would be a lot of closing costs and other nonsense just for an extra $5k.
I'd suggest credit cards or other unsecured borrowed funds -- get it done quick and sell it quick to pay it off.
2nd best might be some sort of equity deal with another investor who has $5k to invest.
You could also sell to someone using fha 203k or homestyle.
Happened to me not too long ago, I found a 12 month 0% financing for 12 month credit card. Did a balance transfer and finished the job. You can also reach out to a friend or family member for the cash.
The window to sell property is closing fast in most markets! I'm seeing flipped/over priced property sitting for 30+ days. Definitely take @Richard Loniewski advise and open a credit card with 12 months, 0% interest.
Too bad close only counts with horseshoes, hand grenades and stretching carpet.
Sell something. Side hustle or part-time job. Signature or title loan. You're almost there!
@Lance Queen What route did you take? Did you finish the flip yet? We would love to hear the story.