Hard lending money or mess with the bank ?

[Sharif Khalaileh]

Hello 👋🏽 Quick question my parents have blessed my wife and I with a house. The only thing is that we have to fix up the house. Which will cost $80k. Well I have a good friend that is willing to help me out with the money to fix it and then I have to apply for the HELOC loan bc a percentage has to be done before applying FIR IT. So when I receive the loan I will pay him back his money and his fees on top of that. Which is 20%-30%. The house is worth $160-$170. And on top of that I was trying to use some of the Equity to start getting into restate. Should I use this route or just mess with the bank and try to apply for a reconstruction loan??

[Nick C.]

After rereading your post above it may make more sense to sell the house. If the arv is 160k, after 80k in repairs plus all the fees and interest for the hard money, then more fees and interest for the refi, plus holding costs there will be very little equity left for you to pull out. This is assuming all the financing goes according to plan. I don’t know the repairs involved but 80k rehabs generally don’t go well for first timers.