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Rehabbing & House Flipping

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CHRIS MITCHELL
  • Real Estate Investor
  • Langhorne, PA
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36
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Excited about first flip until now..HELP!

CHRIS MITCHELL
  • Real Estate Investor
  • Langhorne, PA
Posted Aug 16 2014, 13:56

I'll try to make this short, I'm about to venture into my first flip, property is $58000, rehab costs $50,000, arv $180,000. My liquid funds are extremely limited so finally I found a hard money lender that will fund 100% percent of the purchase and rehab, I have to come up with closing costs ($4500). Rehab time 6-8 weeks, 3 bed 2 bath ranch 1200 sq ft in Bristol PA needs full rehab. I also have to pay origination fee of 3-5% which will be rolled into loan andmy interest will be 13-15%, (I'll know exact figures Monday). Loan term 12 months, interest only payments. My problem is finding a contrctor that will work with the draw schedule of  the lender. This lender apparently won't make any of the rehab money available up front to get the project going and every contractor I talked to wants something up front. How do other rehabbers who use this type of lending product for these situations deal with this? Does anyone have a general contractor in the Bucks County/Philly area that work within these parameters?

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