I have a property under contract and would like to do the rehab myself. where can I get 100% of the financing to do it?
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If it were that easy,omg... there'd be no wholesaling or hunger...!
Not many lenders will fund 100% unless it's a killer deal and you must have a track record of success. Wholesaling may be the best option for you.
I'd also recommend a profile pic that has your face in it as opposed to your torso.
@Rafael Pacheco if you're looking for the name of a lender you'll need to post in the Marketplace.
IMHO its really impractical to do fix and flipping with none of your own cash. You would need an exceptionally good deal and a very flexible lender to pull that off. More realistically even with an above average HML (one who will lend you 70% of ARV with no minimum down payment) and a very good deal (purchase plus rehab 70% of ARV) you'll still need about 15% of ARV of your own cash.
First congrats on your deal.
Secondly, as far as getting 100% financing there is really only two ways I know to accomplish that...
1. Joint Venture find a lender who will do a JV with you where they supply the funding and you supply the house and over the see the project start to finish.
2. Private Lender (normally someone you know) that will give you 100% of cost needed.
I do not know of any HML that will do 100% financing I am not saying they don't exist I am just saying I do not know any of them.
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There are several HML's that will do it here in Illinois.
The keys. 1) You need to have some experience of a couple of deals in order for them to do 100% of the purchase/rehab.
2) Your deal (purchase plus rehab plus points/fees) needs to come in at 65% of the ARV. Maybe 70% - again depending on how many you've done.
More than likely, you're going to have to have at least 20% of the deal in cash. 5% for closing costs and points and 15% for cash reserves that you'll need in your bank.
However, this is still FAR better than plunking down 30% of your own money plus paying the rehab out of pocket.
Its the only way I invest and has allowed me to grow my portfolio significantly faster than any other possible method. The down side is it really limits me to the types of deals I can do. You have to cherry pick big time. But at least it is an option......
If the rehab is not to extensive, do it piece meal with your own money as you get it. It will take longer but when you are done, all the money is yours. Kind of a forced savings plan. That's how i did my first property.
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