How to Finance A Portfolio of SFR Needing large renovations?

[Shameka Williams]

Hello,

How do I finance a portfolio of SFR homes needing large renovations?

I have located a group of properties in the same area owned by the same investor and I am trying to figure out how to approach placing the properties under contract without losing my shirt. The properties are listed for separate prices and I would like to purchase them all maybe in the name of our LLC.

My husband and I both have excellant credit with decent incomes, however would like to obtain the properties based on the deal instead of credit. I know there is hard money, private money, bank financing. My 1st thought is to go through bank financing, however it seems a little more difficult to obtain with the properties needing so much work. They have all been demoed back to the studs an will require a significant amount of capitial to bring them back to livable conditions. We have done one medium renovation on a primary residence we rented out for 2 years. I have a relationship with 2 well known builders willing to assist.

I have not placed them under contract just yet so I will not disclose the location or addresses. My fear is that the investor will not take me serious if I do not have financing in place. What are some of the ways to place these properties under contract? Would a letter of intent be sufficient? Do I need to place an offer with inspection contingencies? I know it will ulimately be up to me, just looking for ideas on approach.

Thanks in advance for your input!

Shameka Williams