Brrrr financing questions

[David Canecchio]

When including the rehab cost into the buy price . How do I use the rehab money without coming out of pocket . Without using hard money or private money . If I am able to get a tridationsl loan from the bank . Any advice is appreciated.

[Will Pritchett]

@David Canecchio Some lenders will loan it and put it into an escrow account and give you draws after periodic inspections.  Each draw will cost money but they are confirming that the work is progressing as planned.  Private lenders can be set up any number of ways because the negotiation is whatever you come up with together.  Also, talk to your conventional lender to make sure you are going to have all the financials in place to qualify (even if the deal goes over budget etc.).  Just try to have backup plans in place.  

When we started we'd only borrow purchase price and later, the lenders were comfortable to loan it all without draws required.  Building that track record will help with future deals.  

I hope this helped.  Good luck.