I ran out of money on my flip

[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.

[Chris Mason]

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.