Orlando, FL · Member since 2019 · 6 posts · 1 vote
I'm looking at purchasing a property in Detroit. I have a pretty good idea of which neighborhood I'd like to buy in. I will be purchasing with cash & all of the properties I'm looking at will need some rehab. I'll be doing most of the work myself or having family help.
What can I do to fund my repairs?
(I have W2's, but no recent paystubs (recently switched to full time commission based work).
I know there's secured loans & HELOCS, but how does that work if I can't show proof of income? Or will they just use the ARV of the home as collateral for the loan?
Sounds like you could do a modified BRRRR. Buy the house with your money, get a hard money loan to cover the repairs, then refinance and pay both yourself and the loan off. Gotta make sure it's the right property though.
Sounds like you could do a modified BRRRR. Buy the house with your money, get a hard money loan to cover the repairs, then refinance and pay both yourself and the loan off. Gotta make sure it's the right property though.
Are you looking to hold or flip the property? Is it inside the city or in the suburbs? There are a few hard/private lender sources that possibly would fund the deal depending on it's location.
@Christina Mahesse definitely possible. I havent worked with anyone I would recommend, but I’ve spoken to a few local investors who have done something similar. Call some hard money lenders! You’d be looking for a rehab loan, probably offer you something in the 6mo. to 1yr range with a balloon payback. I’ve found rates between 6% and 11% for that type of loan, so include that in your cost calculations.