As an investor, what do you do when you don't have enough money?
The one route that I have seen is hard money. Below are the details of the deal. How do I get in an out of this deal quickly and without messing myself over? Or how do I get the money quickly.
Property:
Price: $315,000
Size: 3 unit building (1 3br/2ba, 1 2br/2ba, 1 1br/1ba)
Hello Ebony, why cant you partner with an investor? My second concern is there is no tenants, that is its is not currently cash flowing , Are you wholesaling this deal that is why you are getting a hard money. Why cant you put the property under contract?
Hello Ebony, why cant you partner with an investor? My second concern is there is no tenants, that is its is not currently cash flowing , Are you wholesaling this deal that is why you are getting a hard money. Why cant you put the property under contract?
Taking hard money is like holding on to a ticking time bomb. If you don't enjoy that level of risk the other option is to wait until you find a deal that you can purchase with the cash you have.
@Ebony Blue - what is your exit strategy? Do you see upside to the value of the home? Ie, if you want to refi out of hard money down the line, you'll need to have equity. We know you'll have 15%, but lenders for such investment properties generally want 30% equity (some 40%, some 20%). Will you be there? Also, you did not share anticipated rents...….that affects what you do.
@Adekunle Ilori This listing is on the MLS, I can get it under contract, but I dont have the downpayment to do a conventional loan. I don't know how to partner with an investor.
@Tchaka Owen I want to get out of the hard money loan in less than the 9 months. I don't know if the home would have the immediate equity of 30%, but I don't know how to tell if I am not making any change. Rents would be the following: 1600, 1400, 1300, 900