Where can I get $25,000 just until my house closes-30 days?

32 Replies

My personal home (400k) closes on 9/20/19. I just closed last week on my first duplex on 4 acres $140k. I need $25k now to start renovations so we can owner occupy one side of duplex when we close on our house. How do I find investor to help me with this?

@Darla Smith That seems like a lot to start a job but maybe not depending on the work being done.

I would just make sure you get an itemized break down of the materials (what materials, what quantity, and what price per quantity) so you know exactly what you're paying towards the labor.

I write property estimates for insurance companies every day and deal with contractors who rip off clients because they have a very cheap invoice that has nothing itemized.

$2,000 for "wall drywall"... Well, what type of drywall and how much drywall?

It should read more along the lines of 1/2" drywall at $1.75 per SF.

If they won't give an itemized estimates breaking down the materials then I would personally find someone who will.

Wish you the best!

@Darla Smith

That seems awful high to get them to start working. Have you shopped for bids? You should always get 2-3 before selecting a contractor and reviewing their scope of work.

You can also shop around and tell them the situation to see if they’d begin and get paid later. If you fail to perform they could always put a lien on the property as protection.

@Darla Smith I have seen many different payment schedules.  The main idea is to give the contractor an incentive to complete the work within a reasonable time frame.  In your agreement you should allow a minimum initial draw (for material and manpower) and then subsequent payments at the completion of various stages of the job.  Final payment after all work is completed and inspected.

Be more or less flexible in your terms depending on the contractor's local presence, reputation, and years in business.

@Darla Smith I think you need a breakdown from the contractor on where this big down payment is going!. Typically, contractors that do this use the money to fund their other projects and this results in a big no no. Typically I do progress payments. I breakdown phases of work for my clients in the proposal and collect progress payments as each phase has been completed. If the previous phase hasn't been paid for, I don't continue until I've been paid for my work. I never take anything up front as most contractors have credit accounts with all suppliers they use. I put all material on credit and I pay my crew out of pocket and I get it back once progress payments come in.
Originally posted by @Darla Smith :

@Bill Brandt. The money is not for materials. It is for contractor. She says she needs $ down to start job to cover her employees labor. She will probably only need $10-$15k. I was just wanting to make sure I had plenty.

Huge red flags.   The fact they can’t make payroll unless you advance them money makes me think you might want to find someone else to do your repairs instead.   There’s nothing wrong with doing different draws when they hit milestones. But fronting then that much money says something about the company.   

@Darla Smith

I gotta side with the majority here. Asking for money upfront is typically a huge red flag. Usually it’s for material when they ask and even then it’s a start up amount. This is common for “ handymen” on small jobs. But a GC on what seems to be a big job based off your amount. I’m afraid I’d be going with someone else. Did they provide you with an itemized list or anything or did they just say its for labor?

And is this the only quote you got? I’d recommend getting a couple done before starting the job.

Good luck

As a contractor.. unless I know the client from past work, I would most definitely be asking for 1/3 down. And more if there are special order items like windows, etc.

no one likes to give contractors down money, but we take risks also. Buying materials, paying help at the end of the week, etc. I’ve been not paid in the past, and it sucks.

@Darla Smith Get a credit card to help buy all the materials, and this contractor asking for $10k down is suspect. 

If you are really really want to use her services, then request to pay a smaller deposit and put that on the credit card too. Please with her that your house closes soon and she might understand. 

Congrats on the duplex! 

@Kyle Tipton

Why is it different between a GC and a Handyman? Why should a GC lay out his/her own $ and not a Handyman? Not every “Handyman” is a fly by nighter. I’ve done $1000 jobs and asked for down $ and done $20k jobs and asked for nothing down. To me, it all depends on my level of comfort with the client. I did a bathroom 2 years ago, I asked for $0 down as it was a local cop and was doing it along with my plumber who was friends with him. It took me nearly 5 months to get paid and that was after a letter saying I’d take him to court. He still owes the plumber $ to this day. And I will typically be thorough with my explanation of work on my quotes but you’ll pay more if I have to itemize each task with a price.

@Aaron Hunt

Besides the fact that your response makes no sense.. I will clarify and give an example. Simply an example-

If you ask me to quote painting 2 bedrooms and separately quote replacing the outlets and switches in those two rooms.. I quote you $500 for painting and $100 for outlets/switches. You are half hour from me. Main job is painting. While I’m there I can swap out the outlets. You give me the go ahead for painting. 2 weeks later you ask me to come back for outlets. Sorry, not worth my time to come back. I’ve learned this the hard way time and time again.

Have you looked at the services like Plastiq? They allow you to cut checks and bill your CC. They charge a fee but it’s cheaper than a lot of options. That way they can print a check for your contractor and bill your CC.

Originally posted by @Matt M. :

As a contractor.. unless I know the client from past work, I would most definitely be asking for 1/3 down. And more if there are special order items like windows, etc.

no one likes to give contractors down money, but we take risks also. Buying materials, paying help at the end of the week, etc. I’ve been not paid in the past, and it sucks. 


this is a big catch 22.. investors are tough to work for..  they need everything done as cheap as possible. so contractor margins generally tight.. like this job a 25k Job.. how much can one make on that..  And investors are famous for non pay if there is no loan on the property were your getting lender advances..  I know most say don't pay in advance but I find that nearly impossible in the low priced reno game. 

In new construction ever sub we hire carries the job and gets paid for work in place once a month.. that's standard. if we have them going lets say on 5 to 7 houses at one time we might give draws every two weeks  to help their cash flow but its always work in place.. 

So I get were your coming from as a contractor on those size jobs and or with one off investor who you have no history with and ESPECIALLY if they are not local.. Lein laws in most states go junior to the mortgages .. so even filing a lien is no guarantee of payment.. 

In Oregon subs and contractors have it really great.. properly filed Liens are super liens and jump ahead of mortgages.. 


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