How do I approach people about investing with us on an already purchased property that needs additional funding. It's one of those things where we ran our numbers and added 10% as a cushion; however, the house was in need of more than we initially thought. It's a variety of issues. (For example, some of the cost come in with the city requiring a larger water pipe from the house to the street. The house had been expanded years ago -which included an additional bathroom, but they did not require a larger pipe at that time. Now that we own it, however, we must now bear the additional cost of the upgrade). That being said, we currently have some of the cleaning/gutting, a new roof, architect plans, etc, but if we don't get additional funding, we won't be able to complete the project correctly.
This is a great property in a very nice area and could garner a 150-200K return on our investment after all expenses. Most lenders want first lien, but we already have a loan. Does anyone have suggestions? I'm willing to wholesale and let someone else complete the project, but I'd rather keep it and complete it. I've approached family/friends, but, they don't understand what we do, and think we are crazy! (LOL that's what happens when you try to explain non-REI people what you do).
I'd like to also say that each flip is an adventure and is unique. We've never encounter this situation before. My hope is that, in the future, we would be able to fund the difference, should this occur again. We are working our way there, though.
Does anyone know of a lender that is willing to take second lien, or loan based on our credit/experience?
Thank you in advance for any advice or suggestions you can offer.
If it's an SFR investment property, Fannie Mae HomeReady as a refinance.
@Carin Kveton Our company is out of LA and we do gap funding all over the country. If you interested, PM me and we can discuss details.
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