One of the most frequent questions I get is 'How do I finance this project?' There are two types of financing and how you proceed is dependent on your personal situation.
First, you need to finance the acquisition and repairs. This financing will be in place for 3-9 months only.
-The easiest way to do this is with cash (or its equivalent). If you do not have $50,000 sitting in your checking account, no problem. The most popular solution is to use a Home Equity Line of Credit on your primary residence. You may also consider using a Self Directed IRA (see the IRA section).
-The second is to use private money or 'hard money'. This funding comes from lenders that specialize in rehab projects. In most cases, you can borrow 100% of the funds needed to complete the project. There are fees to be sure but they are minimal when compared to the profit potential. (See the Resources & Links section)
Second, if holding for a rental, you need to secure long term financing.
-Most lenders can offer differing programs allowing you to refinance your project. You will need to ask for a 'Cash out refi' on a 'Non-owner Occupied' property. If you don't know the lingo, just ask. As a licensed mortgage broker, I can assist with this phase or I can refer you to a couple reputable lenders.
Fill out the short form under 'Getting Started' to get qualified for financing!