Hello, well I live in a small town, really small. What are some of the ways that I can get funding for rehabs in these small towns. There is a ton of vacant properties in my small towns of Virginia? I think they will be good for buy and hold but not sure for flipping.
Hi Kyandrea, as long as you can get a good deal, you definitely can get funding. I know we can fund up to %65 LTV. Let me know if you have any questions
@Kyandrea Fowlkes which small town? The market makes a big difference in your choice.
@Kyandrea Fowlkes As @Amy H. has pointed out the market makes a huge difference. There are small towns in parts of the country where lenders will be hesitant to lend any capital. But in other parts of the country - CA, TX, WA, FL, MA - where you will find it easier to find lenders.
There might also be a reason why there are so many vacant properties in/around the small towns you mentioned. A lot of times vacant properties are there for a reason - economic decline, shifting demographics and changing preferences. Even if you get lending, your biggest issue would be finding suitable tenants and selling. It is easy to get into some deals but awfully hard to get out of them.
@Amy H. in towns like Victoria, Chase City, Crew, South Boston. Not even sure if you have heard of those towns but I do see a lot of potential in them as buy and holds not so much as flips.
@Kyandrea Fowlkes I apologize for the delay in response. I was out of the country for 3.5 weeks.
I would be careful with South Boston and Crewe because the economy has been declining. I seem to have been reading a lot of businesses closes in those area. Just last month, a 100 year old business had to close in South Boston. I haven't researched Victoria or Chase City at all so I can't speak to those.
I am in the MBA at VCU and we just had a class on the economic environment in small towns across Virginia (South Boston and Emporia specifically were mentioned) having a terrible effect on the housing demand in those areas. We had the founder of Waukeshaw Development (they have developments in Petersburg, Bedford, Blackstone, etc) come speak to our class and he spoke specifically about Emporia and South Boston being difficult to invest in because of the demand and economy.
Thanks for that information, I will keep that in mind.