In my First flip and need some help
I Purchased a foreclosed duplex in central falls, RI For $60k. ARV on the low end is $135k. We Used a HML and With $5000 down he is ballooning all the fees and payments till we sell the property. Rehab costs are around $30k which I don't have.
What do I do from here? Other than tapping into my inner network (family/friends/co-workers) how can i find private investors? What terms do i offer them? Do they go on the deed? What type of contracts do we use ?
Most Popular Reply
I assume the HML has first lien position on the property. Which means a couple things:
1. You have no cash of your own in the deal (i.e., no skin in the game);
2. Any additional lenders will have to take a subordinate lien position.
That's not a very good position to be negotiating for more money. Which means you're either going to have to find someone who WANTS to help you (friends/family) or offer someone a very good deal for helping you (equity partner, most likely).
Do you have friends and family who can help?
If not, are you willing to give up 50% of your equity for the $30K in rehab money? That's likely what you'd need to do in this situation given the numbers on the deal...