How to get finance after going all in

Question

Hello,

The reason property can’t get finance is because of its current condition. If you put all your cash in purchasing a fixer upper that requires over 200K in rehab. What is the best way to get funds for the required work?

If you can’t get finance in the beginning, is cash out still a possibility? if not, what other ways can you get money?

Thanks in advance for your response.

Jeff Cliff · Answer

@Jeremy Taggart

Hi Jeremy,

Thanks all good ideas. particularly homestyle.  Is there any limit on how much in total can you borrow using homestyle? Moreover, would the bank give homestyle loan on a property that’s purchased in all cash and let me cash out money, as significant amount of money is getting tied up here.

Thanks

Jeremy Taggart · Answer

@Jeff Cliff You can find credit cards that offer 0% interest for the first 12-18 months of opening which can give you some cash for renovations. That or if you have equity in another property you can use a HELOC to get some cash. Partnering with someone that has cash is another option. Also if you have a 401k from your employer if you work a w2 job you can get a 401k loan and pay yourself the interest on it. That or exploring "renovation loans" that some lenders offer. I know the Fannie Mae Homestyle Loan is a product that investors can use that wraps rehab costs into the mortgage.