Help! Loan matures in February and funds are depleted!

Help! Loan matures in February and funds are depleted!

Jacksonville, NC · Member since 2016 · 13 posts · 4 votes

HELP!!! I have a loan maturing in February and I'm out of money for the Flip because it went on way longer than it should have and the last thing that is needed is a roof estimated at about $8800. I got this fix and flip around October of last year and the contractor I had hired was always behind and lying to me about actually being at the property and fixing things up. I was in the Military recently EASed, but while I was in it was hard for me to check on the project with my schedule. Well now I'm coming towards the end of the loan and obviously roofers don't want to do work where someone doesn't have the money and I have asked if they would accept me paying them out of closing and they said no. So I dont really know where to go from here. I just got my license and I know a bank won't refinance or loan me money because I just got started and don't have stable income. Any advice or help would be very much appreciated!

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Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
7y

If truly all it needs is a new roof to be complete and ready to sell then a few ideas off the top of my head could be:

1)  Borrow the money from friends or family to replace the roof

2)  Put the cost of the roof on a no/low interest credit card and pay it off as soon as the house sells

3)  Go through a home improvement store (like Home Depot) that offers financing for larger projects like roof replacement

4)  Don't replace the roof and just lower your sales price or offer the buyers a credit to fix it themselves after closing

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    7y

    If truly all it needs is a new roof to be complete and ready to sell then a few ideas off the top of my head could be:

    1)  Borrow the money from friends or family to replace the roof

    2)  Put the cost of the roof on a no/low interest credit card and pay it off as soon as the house sells

    3)  Go through a home improvement store (like Home Depot) that offers financing for larger projects like roof replacement

    4)  Don't replace the roof and just lower your sales price or offer the buyers a credit to fix it themselves after closing

  • Contractor · Pensacola, FL · Member since 2017 · 311 posts · 156 votes
    7y

    sell the house to another investor.  Assuming you have the equity.  

  • Jacksonville, NC · Member since 2016 · 13 posts · 4 votes
    7y
    Originally posted by @Kyle J.:

    If truly all it needs is a new roof to be complete and ready to sell then a few ideas off the top of my head could be:

    1)  Borrow the money from friends or family to replace the roof

    2)  Put the cost of the roof on a no/low interest credit card and pay it off as soon as the house sells

    3)  Go through a home improvement store (like Home Depot) that offers financing for larger projects like roof replacement

    4)  Don't replace the roof and just lower your sales price or offer the buyers a credit to fix it themselves after closing

     I didn't think about going through a home improvement store for financing like that and I actually listed it about 45 days and put within the description I will replace the roof with any accepted offer.

  • Member since 2018 · 41 posts · 23 votes
    7y
    @Thomas Breedlove Depending upon your unique circumstances, you might want to try making a roofer a partner on the project.
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    go back to your lender and see if you can get an extension and a further advance for that one thing.  Lender does not want to foreclose and have to deal with bad roof..  this assumes you have equity.

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