Finance First Deal- Verbal Contract in place

Finance First Deal- Verbal Contract in place

Flipper/Rehabber · Lombard, IL · Member since 2018 · 2 posts · 0 votes

I am having trouble getting conventional financing for a fix and flip deal on a SFH. The problem is our debt-to-income ration is too high to support both the mortgage and rehab costs.

Details of deal- 225k Purchase price, 50k rehab cost, and 365k ARV.

We are currently doing a large rehab on our primary residence that we own mortgage free but is preventing a HELOC. We have approximately 30k in cash, and access to more funds in 401k accounts. Any advice on how to find financing?

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  • Rental Property Investor · Member since 2019 · 407 posts · 267 votes
    7y

    @Jacob Bjerk

    Can you get somebody to co-sign with you? You could pay them a flat fee for doing so.

  • Flipper/Rehabber · Lombard, IL · Member since 2018 · 2 posts · 0 votes
    7y

    A co-signee could be a good option. We are waiting on confirmation, but we are pretty sure we can get financing for the mortgage only. Possibly, then we can get someone to co-sign a HELOC (on our primary residence) for the rehab cost. We may need drive-by only appraisal since we still have unfinished renovation in our home?

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