Raising funds while executing a lease option

[Zach Henderson]

Hi Friends! The spreadsheet gods have smiled upon me and so has the owner of an 18 Unit property in Clemson SC (my home turf). I'm executing a lease option with the owner starting on July 1st with the intention of purchasing the property within 24 months using bank financing.

Question: How have you raised funds for improvements while executing a lease option?

The property is in currently half occupied and needs of improvements/repairs on several units in order to operate at its full potential. I'm putting in a significant amount of my own capital to secure the lease option and need to raise around $200,000 for improvements/repairs.

Current approach for raising 200K loan at guaranteed rate of return:

• I've purchased a list of investors from www.privatemoneygoldmine.com and i'm making calls
• Applied for a home equity loan using one of my other properties as collateral
• Pursuing friends and family

Happy to get as specific as is helpful.

-Zach

[Steve Vaughan]

@Zach Henderson are you planning on improving a property you don't yet own to the tune of $200k?  My max is 2 guys, 2 days, 2 grand in these situations.

For extensive reno work, get title first.  I'd work out seller financing with a mortgage or wrap to you.  No land contracts.  Good luck and congrats!