I'm Marcello, I live in the Northern Chicago Area, I own a home remodeling company that specializes in higher end projects. I'm looking to transition into real estate fix and flip. We do full home renovations for clients, We're licensed in Chicago and 2 other cities, are familiar with pulling permits.
It would be very easy for me to redesign a home and oversee the completion of the remodeling phase. We have the contractors and also know where to get high quality materials at a really good price. I have been studying real estate for over a year and have familiarized myself with most of the Chicago area and have done comps and a few remodeling estimates/inspections. I know how to inexpensively make a home very high end.
We also have a relationship to get a home refinanced through our bank at 3.1% for remodeling costs. I have seen what i think are some great possibilities some with a profit of around 250k before closing costs, in some fairly hot market's. I am short Capital and credit to make this transition alone.
Considering what i have to bring to the table my missing link is what i see as an investor with 20% down on the home we decide to fix & flip, and the credit to purchase this home, I would be able to complete everything after that from design to remodeling to be ready for the market. How do i acquire my missing link, what are the best strategies?
I appreciate any ideas/tips. Esp as i see winter as the best time to remodel a fix and flip and have it ready for the market in spring.
Sounds like your only missing link is the capital to purchase and fix. Of course you will have holding costs too (taxes, insurance, utilities, interest, etc). If you can get conventional financing at very low rates, that is a decent option for purchase money. Keep in mind that all cash offers typically get pushed to the front of the line over financed offers from banks which take 30-45 days to close. Another option is private money lenders. Talk with people you know and ask for referrals too. Those with money but no time or know how are perfect candidates. Family, friends, doctor, CPA, attorney, neighbor, etc.
Another option is hard money lenders, they will be more expensive, require skin in the game, and your experience level will dictate what terms you can get.
Lastly, you can find a JV partner (joint venture), one with the cash but less time, partner with him or her and split profits.
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