First Property!.....Advice needed

[Nicholas Reyes]

Hello everyone,

As the title states, I purchased my first property! Very excited and eager to get the ball rolling. I have read on the forums and listened to many podcasts for months before I made this purchase, only I didn't research enough for my current situation. So I purchased the property at auction for cash, I drove by and know the area it is in pretty well, I paid 10k for the home, ARV of 60k, needing 20k in rehab work. My crossroads is in funding the rehab, I was leaning towards a commercial LOC with the home as collateral; or refi the home as is; or use hard money rehab loan, then refi into a long term mortgage. The loans must be in the name of the LLC, I do not want to transfer the home out of the entity (I made the mistake of purchasing in my personal name, had squatters in the property which trashed the exterior. Neighbors complained and the city wrote me several citations before I even had possession of the property. If you're like me, having those citations on your personal record is nerve wrecking and defeats the entire purpose of forming the entity, but that's another part of learning). Long story short, I'm looking for advice/recommendations from those of you whom have experience with commercial lending or know of any other creative ideas to get funding for the rehab. Thank you in advance, I appreciate any/all opinons!