All Forum Posts by: Stephen Collins

Good luck! Who are you with? 

PM me an AE address and half way through I shoot you a care package with some new stuff.

Bump. I am still looking for a creative way to fund a 30k rebab deal.

However I spoke with Marc Simpson today from Peak Choice Capital. Even thought it was just an early phone call my initial impression was a good one, for anyone else who might be in a similar situation his number is Phone (902)267-7682.

Again though, I am still looking for a creative way to fund a 30k rebab deal.

I am looking for a private money lender to help finance a rehab on a foreclosure. I need $30,000 to complete all the required repairs. I would be willing to borrow the money with a 10% APR interest, over a 60 month term, paying back a total of $38,245. I would like the ability to pay back early with no prepayment penalty. The property is located in Alabama. I am flexible and open to other creative options.

I have detailed documents showing the CMA and my AVR, my rehab budget, property contracts ect.

V/R

Stephen Collins

Email: [email protected]

Cell: (512) 966-8380

@Account Closed   You are my beacon of hope! I would love to pick your brain and get into the details of this worked for you. I am in the military so my pay is always steady, and my job security is fantastic. I have a section of my pay check each month set aside to make my monthly minimums on the CCs, and then I'll just repay myself back when I sell. The Lowes idea is a great concept and I will absolutely go check that out when I close on this new house. Also another great idea to roll over the balance onto another card with no fee, just to buy time. Brilliant!

@Clay Smith I do not want to hold the property. I want this to be a "fix and flip". Now I use that term loosely because  I had to use a conventional loan, and I had to move into the house. So I plan to move in, stay for a year to make the repairs needed, make the tax hit hurt less, and then sell.

So I think we are saying the same thing. I fund the repairs by 0%APR CCs, and then sell. If I cannot sell right away maybe I can refi-cash out, to pay off the CCs, and then sell when a buyer comes along, pay off all the notes, and keep the difference.

I just need to hammer out where I get that 30k to make all my repairs? I guess 12 months 0%APR CCs might be my answer, knowing I might need some type of refi to buy time when my 12 months is up? That or a hail marry from a private lender! Does anyone know of anyone who might be interested?

@Clay Smith I financed it with a 5% down conventional loan, to avoid the PMI later on down the road, if i have to hold on to property B as a rental.

@Manolo D. Since I made property B a primary residence 12 months just seems to fit. I would hate to move in and then move out in 2 months. Instead one year gives me some tax advantages, and allows me more time to try some of the work myself.  

@Clay Smith I financed it with a 5% down conventional loan, to avoid the PMI later on down the road, if i have to hold on to property B as a rental.

@Clay Smith   and @Rodney Marcantel I do not want to sell property A because it cash flows, and I got it for a fair deal as a first buy. I want to add to my portfolio and not take away from it. In general how does the hard money/cash out process work? I would borrow my 30k from a HML, make ALL my repairs, and then refinance right after? I know I would pay the HML points which is going to eat into my profits. I am working on about a 10k margin, I know thats not fat enough for most of you but if I can break even and gain the knowledge, then for a first flip it might be a win. With the CCs I have a similar plan but without the points/no interest. Use the CC to make all the repairs and then refinance, use that equity to pack back the CCs, and then sell, pay off the house note, and pocket the difference. I dont have a proven track record where I could make that pitch to families. I guess I can educate them on the plan, but since I am not a "pro" and they might not see the big picture, it can be a tough sell but an option. A partner is a good idea, I guess I should head to some local meetings this week. Thank you both for your insight.

You have to start somewhere. Well, I guess you also need money to start. I am under contract on a foreclosure in town, that I plan to fix and flip. I did my homework, I know my CMA, the house is in a great part of town (schools, parks, shopping), the house just needs some love. I plan to move into the foreclosure (property B), while I rent my SFH out (property A). I have a tenant lined up and it will cash flow slightly. Good to go with that.

Unfortunately I spent the majority of the cash I have on hand, on things like closing costs, and my down payment. Now I have property B which needs about 30k in rehab (I have a detailed budget with quotes). I am thinking of taking out 0% APR credit cards to pay for the rehab, and then selling the house, paying off the house note, and the credit cards before I am charged any interest and pocketing the difference. What other options are there?

What if I spend the rest of the cash I have on hand to make the biggest "bang for my buck", and instead of taking out credit cards, try and squeeze any equity out of it with a HELOC. I can use that money to pay for the rest of the rehab, and then sell property B, pay off both notes, and pocket the difference.

I know I should have 100% of the cash I needed to start and finish this project, but I needed to start somewhere. The rehab is for cosmetics, if it doesn't get done right away it will not affect my health or safety. Worst case I live in an ugly home for a while while I save back up.

I am looking for some creative ways to raise money to finish this rehab, sell, and start the process all over in about 12 months.

@J Scott and @Jon Holdman for whatever reason you were not tagged in my above post.  ^^^ 

Thanks again everyone.