How to fund this deal

15 Replies

Okay, so I need help in trying to figure out how I can find my first deal. I’ve been stuck at the finance part of this whole process. I’m an Agent with an investor mentality just haven’t taken the plunge yet, primarily trying to get my financials in order a bit before I do. However, I found a deal I really want, it’s a modular on 2 acres and a pole barn, mostly cosmetic uplift and roof. The location is sooo good for this! Details below:

Purchase price - 70k

Rehab cost - 30k

ARV - $140k

Side notes: not a huge profit potential but I would love to just get my feet with this one as I’m very confident in my numbers and the location being a Realtor here I understand this market.

Any suggestions on funding this deal ?

My credit score is not very good. 640

I have 10k in available funds and some in my SEP IRA and credit cards.

Hard money lenders abound in most markets. If you get out to local REIAs you should be able to find a few. How can you substantiate your 30k repair bill and your 140k ARV? Did you have a GC or someone experienced in rehab put a budget together for you?

@Chris Slater do you have a time frame on the turnaround with the flip? Hard money would work for you but the longer your rehab takes it could add up. Also, $40K profit is outstanding! Don’t minimize that!!! Best of luck to you. I’m trying very hard to get my partners to focus on lightly distressed properties for our buy and holds that we can fix and refinance. It’s great motivation to hear others telling their stories of rehabs.

The absolute best education is experience, and this deal looks pretty low risk. On paper the numbers look good, if you are confident in your projections then find some hard money and PULL THE TRIGGER. $100k is easy to find if your numbers work. I think it was Ken McElroy who said, "There is a lot more money than deals". Make sure you factor in your financing costs and holding costs (how long will it sit on the market before you get a buyer?). I'm rooting for you, keep us posted!!

Hey TQL guys that were following this discussion unfortunately I wasn’t able to get this deal done because I went and looked at the property and obviously I should’ve done this prior to but it was absolutely In horrible condition and I would’ve needed to purchase this property for no more than 40,000 to make it worth it. However I do have another deal or two that I’m looking at for the 90 day challenge :-)

Originally posted by @Chris Slater :

Hey TQL guys that were following this discussion unfortunately I wasn’t able to get this deal done because I went and looked at the property and obviously I should’ve done this prior to but it was absolutely In horrible condition and I would’ve needed to purchase this property for no more than 40,000 to make it worth it. However I do have another deal or two that I’m looking at for the 90 day challenge :-)

 So why not make an offer at 30-40k?