Here’s the bottom line...
I have an off market residential property I’m living in/renovating with my own capital and labor. I have my own renovation/handyman business and jobs lined up for the next 3 months. While this is good for my business, it puts me in a position, where without the needed capital Im going to let down the seller and possibly lose this amazing investment opportunity. Property details will be listed below, my credit is not the greatest but I do have around 10K of my own money to bring to the table. Insights would be greatly appreciated!!!
Purchase price: $90,000
Current market value as-is: $115,000
Rehab costs: $40,000
Personal capital: $10,000
@Katlin Henderson so I’m confused. The numbers represent the house you’re living in/renovating? The numbers look good at first but you have to also take it account what the holding and loan costs will be. Now, you could try and network a PML to see if they will lend you the money or go down the hard money lender route. There’s always options 😎
@Daniel Brown thank you for the response. Yes I got the contract for the property on a “creative” wholesale deal from a family friend who knows and has seen my renovation work, I’m currently spending around $750 in holding costs monthly but was working on fha financing when I learned about and researched other financing options that would better suit my goals.
@Katlin Henderson Go back to the seller and see if they own the property out right. If they do, try to do some type of seller financing. This will give better terms (hopefully) and an ability to save some money up front.
But you live in it? That’s problematic for hard money lenders.
@Jared Welch yes I’m currently living in the property because I’m using all of my own capital for the renovation and doing all of the work myself. It was the only way I could make it happen on my own...leap of faith if you will lol
You need a partner or short term loan
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