Creative Funding Options - Pittsburgh

[Isaac Sheehan]

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!

[Stefan D.]

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.