What are my options?

Question

So I finally took the dive into hardmoney but have also come across some private money... my question is the private money can cover the acquisition expense but still need funds for the rehab. About $60k. Are there options other than hard money that can fund the rehab portion of this deal? If so what are the pros and cons?

Andrew Postell · Answer

@Dave Saveri then if you are not under a time crunch then your choices will be numerous.  Most "portfolio" style loans will be a 20 year adjustable renovation loan but as I mentioned above the Fannie Mae loan is a good 30 year loan if you can qualify for that loan type.

Dave S. · Answer

Thanks @Andrew Postell. To be clear I can purchase the property outright so I don’t have to be time crunched in that aspect but was looking for something that would be applicable after I already own the property

Andrew Postell · Answer

@Dave Saveri there are all SORTS of loans that can wrap renovations into a loan.  One of the biggest problems that we face as investors is closing times.  So if your seller is facing foreclosure on Tuesday....then Hard Money might be the ONLY option you have. Fannie Mae has a renovation loan that is 1/2 the costs and 1/2 the rate as hard money...and it's a 30 year fixed, so you don't have to refinance out....but it takes 30-40 days to close that loan.  That's out for most of what we do.  There should be other lending options for your area so I would suggest either networking with some local REI groups or maybe even posting in the Pennsylvania forum (or whatever state forum you are investing in) to see what some good locals have to say about it.  Hope this helps in some way.  Thanks!