Hard Money Lender and Business Credit Lines

[Jordi Valado]

Hello, 

I am new to real estate and would like some help on funding for section 8 rentals. Back story, I live in NJ and the barrier to entry is pretty high for a home here and I am low on cash for a down payment. I am very interested in the idea of section 8 investing in the South East, specifically Memphis, TN. How I plan on funding these projects (at least the first deal), is using a hard money lender for the purchase price and rehab and forcing the appreciation to refinance with the bank. I understand the HML will still require 20% down and I plan on using a business credit line for the gap funding. I am looking for some advice on this strategy, I know there are some holes but I wanted to keep the post short and sweet.

Thank you!!
 

[Robin Simon]

Quote from @Jordi Valado:

Hello, 

I am new to real estate and would like some help on funding for section 8 rentals. Back story, I live in NJ and the barrier to entry is pretty high for a home here and I am low on cash for a down payment. I am very interested in the idea of section 8 investing in the South East, specifically Memphis, TN. How I plan on funding these projects (at least the first deal), is using a hard money lender for the purchase price and rehab and forcing the appreciation to refinance with the bank. I understand the HML will still require 20% down and I plan on using a business credit line for the gap funding. I am looking for some advice on this strategy, I know there are some holes but I wanted to keep the post short and sweet.

Thank you!!
 

 Could certainly be a good strategy and plan but generally should be conservative and have "skin in the game" especially when starting out.  Looking to be 100% with "OPM" (other people's money) and skipping ahead before you save some capital for cushion/your own costs, then its potentially a recipe for trouble