Hi there BP,
Over the last Almost 2 since losing my job and becoming my own self employed full-time contractor, I've managed to consume myself with bid after bid and one job after another that gotton me nowhere near where I want to be financially. Although I've met a lot of great people through this experience, I've ignored my real estate investing career and this amazing bought and paid for asset that I've owned for nearly 3 years now. It's my third property that I bought that is a 1500 square foot fixer upper in a great area of town for rentals and even flips for that matter. I told myself that I was going to work on it weekends after other jobs once I went self-employed but life, kids, and of course money always would impede for that to happen as much as I wanted it to.
So here's the details on the house I know ARV is between $75k and potentially $85k. The roof is under 10 years old, electrical panels have both already been updated, framing for an open floor concept is almost complete, and it's been converted to serve as a one-bedroom apartment upstairs and two-bedroom apartment downstairs duplex. Rent for the one bedroom would be between 500 to $550 and the two-bedroom would fetch another $650 and the house is located just a few blocks from the wells Corridor and the downtown Improvement project that's currently happening and should only increase property values over the next few years so I've Been Told.
My big question is since I've tried doing a HELOC in the last 12 months and was unsuccessful due to my self employment status and the current condition of the home, I plan on fixing it up and continue doing all the repairs myself until the place is fully rehabbed and rent ready. I have no intentions of flipping the house since I know the money lost in rental income over a decade highly outweighs the capital gained from flipping it just once, so I plan on holding it for the long term , but I need Capital now in order to make any of that possible in a timely manner. My conclusion given my self-employed status, and the fact I've been turn down by three different banks for financing already in order to complete the place is that I need a hard money or private money loan to make this happen. I wanted to know if anybody had any ideas or recommendations here locally where I could get the money I need in order to finish it and the terms I need in order to have time to refinance out of it once it qualifies for Bank financing?
@Peter Fennig Lima one capital and finance of america commercial both lend long term based on the investment. Not the greatest terms, never used them, but they are options for you until you can find a more self employed friendly bank. Credit unions and smaller local banks are usually nicer and more flexible with their lending, but will have a little higher interest rate than big banks.
Have you looked for any private money or a partner?
Thanks Grant , I checked them out and waiting to hear back.
Ya Randall, I'm meeting with a gentleman I've done work for who is interested in potentially lending money next week. I've also in the last couple days found a bank that's willing to lend me money in a portfolio loan which I'm thinking I'll probably go with as long as everything's what they say it is