I'm looking into a potential flip and was curious if I went seller finance. Could I then apply for a HELOC post close w a traditional lender? If so, how would that look?
Long story short my thought is to secure the property with seller finace up to 12months terms tbd. But to finance the rehab cost use a HELOC once we have closed and seller has placed a lien on the property.
Offer price $185k
Rehab cost $100-125k (HELOC)
The property is in a private lake community w comps in the 400’s. The homes exterior is in great shape. The interior not so much. It’s a hoarder situation and not real clear of the conditions inside but I’ve been told that it’s a complete gut. (Scheduled to get a look in the next 7-10 days)
Just curious if anyone has used this strategy or if it’s even possible. Look forward to the feedback.
Thank you in advance!