Financing for repairs

[Chris Potthast]

The repairs have far exceeded our budget. HELOC application is in progress but a VERY long lead time. Looking for financing to keep repairs moving forward. Any suggestions?

[Daniel Harvey]

It only took my heloc 3 days to get approval back in April of last year with BB&T/Truist.  They did the appraisal over the internet from Zillow and other websites to verify the property value and made it really quick. 

[Mark Navarrete]

Have you looked into private/hard money lenders?

[Erik Estrada]

Quote from @Chris Potthast:

The repairs have far exceeded our budget. HELOC application is in progress but a VERY long lead time. Looking for financing to keep repairs moving forward. Any suggestions?

 A hard money loan could work but this highly depends on your exit strategy. Is your plan to sell this property or keep it as a long term rental? 

[Eliott Elias]

Is the house paid off or is there debt? I would take hard money, could be tricky if someone has a first position lien 

[Chris Potthast]

Quote from @Erik Estrada:

Quote from @Chris Potthast:

The repairs have far exceeded our budget. HELOC application is in progress but a VERY long lead time. Looking for financing to keep repairs moving forward. Any suggestions?

 A hard money loan could work but this highly depends on your exit strategy. Is your plan to sell this property or keep it as a long term rental? 

 Hi Erik. We plan to sell ASAP when repairs are finished. There is an outstanding hard money loan on the property too. Do you know a private or hard money lender who will work with us?

[Erik Estrada]

Quote from @Chris Potthast:

Quote from @Erik Estrada:

Quote from @Chris Potthast:

The repairs have far exceeded our budget. HELOC application is in progress but a VERY long lead time. Looking for financing to keep repairs moving forward. Any suggestions?

 A hard money loan could work but this highly depends on your exit strategy. Is your plan to sell this property or keep it as a long term rental? 

 Hi Erik. We plan to sell ASAP when repairs are finished. There is an outstanding hard money loan on the property too. Do you know a private or hard money lender who will work with us?

It depends on what your current LTV is. Most will not go over 75%. If you have another property you might want to look into taking on a second position hard money loan, make the repairs and then sell it, pay off the second on your other property.

[Bob Reinhard]

Likely, if at all, private money. No lender wants to be in a 2d position on the property.

Much success.

[Chris Potthast]

Quote from @Bob Reinhard:

Likely, if at all, private money. No lender wants to be in a 2d position on the property.

Much success.

Hi Bob. Yep. That's the challenge and why I was reaching out for a possible solution. The waiting period for the HELOC approval means additional carrying costs so we are trying to be proactive to find a solution where we keep the renovations moving forward. Yes, proactive would have been to be accurate with the estimate of repairs and have the HELOC in place but that is hindsight at this point. Lesson learned.

[Chris Potthast]

Quote from @Mark Navarrete:

Have you looked into private/hard money lenders?

 Yes, we have looked into private/hard money lenders. The challenge is finding a lender willing to take on a second lien position. If you know a lender open to that, I'm open to discussing with them.

[Bob Reinhard]

It is one of those things that B.P.  productions, sadly, seems to 'gloss over'

[Matthew Crivelli]

Rehab loan from a HML might work. @Chris Potthast

[Stephanie P.]

Quote from @Chris Potthast:

The repairs have far exceeded our budget. HELOC application is in progress but a VERY long lead time. Looking for financing to keep repairs moving forward. Any suggestions?

 Hard money as others have said.  You'll have to get them to payoff the first and then provide an accurate and reasonable scope of work to get the repairs paid out in draws.

[Jack Mawer]

I would look into private money 

[Steve Vaughan]

Depending on how much you need, materials can be purchased with credit cards of course.  Free and clear vehicles can get title loans from your bank.

Both suggestions make me vomit a little.  Fix and flip can suck, but at least transaction costs are high and taxes are high too if you make a profit. 

[Dave McIntyre]

Hi Chris,

One option that might work is to get unsecured working capital funding. It's out there and available from lenders who don't have as strict criteria as conventional banks.

Best,

Dave

[Daniel Harvey]

It only took my heloc 3 days to get approval back in April of last year with BB&T/Truist.  They did the appraisal over the internet from Zillow and other websites to verify the property value and made it really quick. 

[Chris Potthast]

Thanks for all the feedback and the heads up about BB&T/Truist. I actually had a HELOC application at Bank of America but they projected a turn-around time of up to 4 months. After meeting someone at a networking event in Dallas, I was referred to Comerica where I worked with a team in California who got everything done in about 2 weeks. We were then able to continue the work on the property with the available funds.

[Bruce Lynn]

Can you get personal loan from a local credit union?

Probably cheaper than hard money.

Should be quick turnaround.

Lots of lenders no longer doing HELOC. As you say, many have 45-60 day lead time.

Would appreciate the referral to Comerica if you want to DM me.