Posting this in the more general forum as well, but thinking you guys might have some ideas on local suppliers for this one.
Hi everyone! My partner and I just got a house under contract in Denver for $500k and are looking forward to getting started on renos! Our strategy is a fix and flip and we're fairly confident we can be in and out in 90-120 days - still scoping the reno timeline though.
A question for this group: the down payment really killed us, and so we're looking for creative ways to fund the renos and stretch our budget. We're looking at $50-65,000, and given the short timeline, we're OK with getting a construction loan, or even a line of credit.
Any tips for us? Supply companies or contractors that may do net 90 day accounts, hard money lenders or business loans that would do short term loans, etc etc etc.
If you are just under contract, and have not yet closed, I would suggest you reach out to some hard money lenders. There are lenders in Denver that could cover 100% of the purchase price as well as 100% of the repairs. This would potentially alleviate a down payment killing your cash position. A bit more info would certainly help with that. you mention the repairs will be between $50-$65,000 and that the purchase price is $500,000. that is a great round number so is that the real purchase price? if not, would would that actually be? and the most important question/number, what is the ARV?
Once we know those three big numbers, then you can crunch the numbers quickly and see if those lenders can actually fund all 100%, close to it, or really if the deal isn't as good as you think.
I love the ideas for contractors with terms and the more outside the box thinking. Is there anyone else that you might want to partner with that has some cash? or someone that could come in and be a private lender to lend the construction funds in a junior position?
Have you done a flip before? What's the ARV? Were you aware that the down was going to be so much?
We did our first flip on credit cards and money borrowed from friends. That might be your cheapest option.
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