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Updated almost 4 years ago on . Most recent reply
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Creative Funding Options - Pittsburgh
Looking for some feedback on creative ways to fund my first flip. Here is my current situation:
- I currently have one rental property in another state.
- Most of my own capital right now is tied up in my residence here in Pittsburgh (livin' and slowly flippin')
I don't know if 100% funding for purchase and rehab is a reality, but if it is I'd love to learn more about my options there. Other thoughts that have crossed my mind to cover a downpayment - personal loan, line of credit, private money. Looking forward to hearing some ideas!
Most Popular Reply
If you or a relative has a lot of money in their 401k, doing a 401k loan is a great strategy. Usually how it works is that the fees are very low, the interest is around 4% and you pay that interest back to yourself. The payments are deducted from the persons paycheck. You could essentially promise a relative a raise if you pay them an interest rate higher than 4% (or whatever the rate is). Plus, the stock market is at a record high but the economic fundamentals are shakey - it's a good time to get out of the stock market and into other investments.
As a disclaimer, I haven't done this myself yet, so there might be a little more to it than this, but I think definitely worth looking in to.