Funding a Flip of a property you own

Funding a Flip of a property you own

Member since 2019 · 1 post · 0 votes

I was able to obtain ownership of a property to flip (Mother’s old house) with lots of potential. I now need to secure funding for the repairs. What source would you recommend I use to fund this? I need a 6 Month Loan of ~30K. I have the guidance of a retired flipper and a crew that will be doing the repairs ourselves. Any recommendations or other places I should ask this would be appreciated!

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  • Rental Property Investor · Surprise, AZ · Member since 2020 · 405 posts · 179 votes
    5y

    @Alexander Arsuaga

    I would suggest using private money from either family or friends. If you don’t know of anyone then a hard money lender would be an option as well. Depending on who you use, they typically charge around 12% interest and a few points for the loan. You would have to see if the would be willing to find that small of an amount as well.

  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    5y

    So you can borrow against the house for the rehab. 

    It would be the same rates as a purchase if you have owned the home for less than 3 months.

    1 year bridge then sell or refi into long term options.

    Just my 2 cents!

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