All Forum Posts by: Hyeseong Park

 If not sold well, I'm going to rent it out of. BLOC is fixed. 3yrs draw / 27years repay. 

Hey BiggerPockets community! I’d love to get your thoughts on a deal I’m working on and my financing strategy. Appreciate any advice or insights.

Here’s the breakdown:

Property Details:

Purchase price: $40,000

Rehab budget: $60,000 (lender holdback)

ARV: $175,000

Financing:

I’m getting a fix & flip loan with the following terms:

Loan amount: $100,000

Interest rate: 12%

Origination fee: $3,000

Processing fee: $450

Interest-only payments: $1,000/month

6-month term

Rehab holdback: $60,000

I also have access to a Bloc [Business line of credit] loan (secured against my rental property, NOT the flip property) with:

Loan amount: $35,000

Interest rate: 12%

Term: 3 years

Secured by my rental property

No other fees rather than 3% app fee.

My plan:

Use the fix & flip loan to cover the purchase + rehab, and use the Bloc loan strictly for holding costs like interest payments, insurance, utilities, taxes during the rehab/sale process. I’m planning to sell the property after rehab (resale exit).

Estimated profits after all costs (including loan fees, interest, selling costs) are around $40k–$50k.

Questions:

1. Do you see any downside to using the Bloc loan (12% secured against my rental) as a buffer for holding cost?

2. Any potential risks I’m overlooking?

3. Would you approach this financing differently?

Thanks so much for your insights – trying to make sure I’m not missing anything before I move forward.

Hey BiggerPockets community! I’d love to get your thoughts on a deal I’m working on and my financing strategy. Appreciate any advice or insights.

Here’s the breakdown:

Property Details:

Purchase price: $40,000

Rehab budget: $60,000 (lender holdback)

ARV: $175,000

Financing:

I’m getting a fix & flip loan with the following terms:

Loan amount: $100,000

Interest rate: 12%

Origination fee: $3,000

Processing fee: $450

Interest-only payments: $1,000/month

6-month term

Rehab holdback: $60,000

I also have access to a Bloc [Business line of credit] loan (secured against my rental property, NOT the flip property) with:

Loan amount: $35,000

Interest rate: 12%

Term: 3 years

Secured by my rental property

No other fees rather than 3% app fee.

My plan:

Use the fix & flip loan to cover the purchase + rehab, and use the Bloc loan strictly for holding costs like interest payments, insurance, utilities, taxes during the rehab/sale process. I’m planning to sell the property after rehab (resale exit).

Estimated profits after all costs (including loan fees, interest, selling costs) are around $40k–$50k.

Questions:

1. Do you see any downside to using the Bloc loan (12% secured against my rental) as a buffer for holding cost?

2. Any potential risks I’m overlooking?

3. Would you approach this financing differently?

Thanks so much for your insights – trying to make sure I’m not missing anything before I move forward.

 Got it! I will take a look at their website. Thanks for the info!

 Yeah thats' what I thought. And there is only 1 time closing costs which is approx 3% of line amount ($1,059), nothing else. For the 1st lien, the interest is 7.3%. And yes. I'm trying to protect my cashflow as much as I can from 2nd loans so. 

I recently found a lender who supports providing BLOC (Business line of credit) from equity from my rental property which is under my "LLC", which usually lenders don't offer. But they provided me 3 year DRAW + 27 years term with 12% APR for $35,000, which is expensive.

However, the purpose for the BLOC is just to flip simple cheap houses, to rehab or leave it as emergency credit line but most likely, purchasing cheap distressed houses in PA like 20k, 30k some. (Don't ask how I buy these)

Do you think it is still worth to apply this BLOC from the lender? This loan will be 2nd lien from the rental property and 1st lien will be not paid off for now.

If theres another better way, I will definitely welcome to the opinions! 

I found a really good deal in PA and the seller is asking $35k and rehab will be around $20k so I need around $48-50k. 

Need a fast closing lender. 

Have a fix and flip experience. 

Credit score: 721

 explain nicely