All Forum Posts by: Acaysia H.

Quote from @Evan Polaski:

@Acaysia H., congrats on taking the leap and getting started.  As John noted, with such a small amount and less than stellar credit, along with no experience, your best bet is to keep pushing the friends and family side.

I would also plan on some heavy contingency dollars beyond your renovation budget, so when you continue pushing for more investment money, even if you are very confident in your rehab budget, I would make sure you have a cushion beyond your $10k budget.

Thank you Evan for the feedback and breaking it down. We will definitely keep this in mind moving forward! Also I did come up with another question. Since the contract for deed is in my friends name how can I utilize my credit score to help her in any way when my score is eligible for refi and let’s say hers may not be eligible at the time? What I’m saying is I believe I can increase my score before my friend is able to however technically this deal is in her name. 

Quote from @John Chong:

You'll probably need more private capital from friends/family or a partner. The loan amount is too small for most banks. As long as your FICO is about a 620 you should be able to pull cash out on the refi. 

Thank you for the feedback John. At least that gives us a goal to work towards in regards of the refi when we get to that stage. 

Hello everyone! Thank you for taking the time to read this. Firstly I want to mention my friend and I are complete beginners to investing and flipping so any help/guidance is greatly appreciated.

My friend recently locked in a contract for deed on a fixer upper property for $14k. Estimated repairs are about $10k. We are very limited on funds but we managed to gather from friends and family $6k to help rehab the property. A friend of hers told her to go to the bank and try to get funding to pay for rehab and pay off the contract however she has been denied by two banks so far and that was pretty discouraging.

(Side note: both of our credit scores are low as of right now but nothing derogatory besides high debt to be honest with whomever reads this)

Right now we feel stuck because we can’t completely rehab the property and pay off the contract with $6k. Our intentions were to fix it, rent it and pull out equity to do another. Speaking of equity, the house would be expected to have a value of $150k after repairs.

We are seeking what other avenues, ideas or anything that we may not know of to help get through this process. Also I’m questioning if we are still sol on pulling equity out of the property due to our credit scores & debt even after we repair the property?

I hope this is somewhat clear to understand.