Might bite the farm ? ;)

[Brett Miller]

Okay guys looking for some advise. I currently have two properties. A single family home and a 4 unit Multifamily. Both are paid off besides a $35,000 Heloc I have on my single family personal home. An excellent dream property just popped up for sale I would love to move to. its a farm with 15 acres but the terms are cash only because the house is in decently rough shape. The farms property is highest and best by September 1st. If all goes right I should be able to take out equity out of the new purchased property to fix it up and make it beautiful because it’s way under market value. The problem I’m having right now is how do I finance this deal having to show proof of funds without enough time to sell either of my current properties? My Single family property is valued at around $225,000 and my Multifamily is worth right around the same at 225-250,000. How would you go about this? Ideally I would love to keep both my current properties and rent out my house I’m currently in for some extra income. the farms value is around $450,000 fixed up and I’m hoping to get it for 150-165,000. So if you were in my situation what would be your options? I essentially have 20 days or so to make an offer all cash no contingencies (probate court). I’m thinking maybe a bridge loan ? Hard money and pay it back with a refinance? Any insight to this will be extremely helpful and appreciated greatly! Thank you!!!!

[Nathan Gesner]

Quote from @Brett Miller:

What's your goal? Are you trying to build long-term wealth, or do you want to be a farmer? Are you planning to flip the farm and generate a chunk of cash to invest in other properties?

If your plan is to build wealth, I recommend keeping both of your current properties and applying for a line of credit against the equity. If you can successfully bid on the farm, you can write a check with your line of credit and pay cash for the property. You may even have enough credit left over to pay for renovations. Renovate the farm, refinance it, and pay off your line of credit while keeping the single-family home and fourplex.

It's hard to know how to get somewhere if you don't know where you're going. Develop a goal, then make decisions that drive you toward your goal.