Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
Hi B/P family,
So what if you were about 95% complete on a flip and you needed about 4k to complete, what would you do besides private money? Its a bit of a dilemma because you've made it this far and you dont want to have to give any of the profits away just for a small loan. But if its going to get you the 4k you need and the house sold, then why not??
***I know I'm talking in 3rd person while answering my own questions, but these are thoughts that goes through my head and so thats y I am asking for any and all suggestions**
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
I'd probably try to get a signature loan or a car loan (if I had a paid off car) from a credit union or small bank. Maybe a credit card check with a 0 or low interest introductory period?
Stay away from title pawn and payday lenders, but $4k isn't much.
Can't believe I just recommended things I haven't done in years and would never do myself these days. So it goes with operating / flipping for one-time paydays at high tax rates.
Congrats on using your own capital so far @Candace Postell. Best of luck to you!
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
Right off the top of my head... A/C, Furnace, landscaping, stove just to name a few... its really minimal. Just little things that will add up. But new A/C and furnace is probably two biggest expenses. Im sooooo close:(
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
I will post once its complete. This has been a long journey for me, but I am so excited and very proud of what I've accomplished so far. It will take a little more patience, but I will persist.
Investor · Annapolis, MD · Member since 2014 · 25 posts · 5 votes
9y
Hey, Candice, I have been in a similar situation and I went to the HVAC contractor and asked him to carry a note on his work, paid at settlement. Most won't be interested, but I bet you can find at least one. Maybe you offer a little premium on top? Don't forget the carrot ( I will probably be using you for more jobs.) Good Luck!
Investor · Germantown, WI · Member since 2012 · 206 posts · 364 votes
9y
Can you find an HVAC installer that offers 90 days or maybe 6 month same as cash financing? That might take care of the largest of your expenses without costing you anything.
Property Manager · Bowie, MD · Member since 2017 · 120 posts · 67 votes
9y
I would reassess. What is the 4k going to really give you? (Aesthetic or critical) could you do without? can you change terms on the balance of the work? Would sweat equity help? I guess it really depends on what the money is for.
Investor · Takoma Park, MD · Member since 2016 · 166 posts · 147 votes
9y
@Candace Postell I encourage you to sit down and really work up an exhaustive list of what you need, and then come up with a REALISTIC estimate of what those things will cost. For the things you mentioned above, 4K sounds a little low. Make two lists: Need to have and Nice to have. For big items, like the HVAC, you may be able to work something out with the vendor, as @James Skelton and @Nicholas W. have suggested, so that is worth exploring. The other options mentioned here are also worth pursuing, but with the following caveat. You need a clear-eyed estimate of how long it is going to take this place to sell once it is on the market. You don't want to find yourself trying to decide whether to drop the price or pay interest for another month. And you don't want to have the HVAC vendor agree to carry the note for 90 days unless you KNOW you will have the sale completed and the money in your pocket by the end of that period. Good Luck!
Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
9y
If you can get a credit card that offers no interest for 12 months then that would be a good route to take. The items you mentioned will generally be payable via credit card (maybe at a small premium).
Investor · Marietta, GA · Member since 2014 · 226 posts · 97 votes
9y
Candace Postell Use your vendors for credit. Find an HVAC person who will wait until closing or has 30 day credit. Buy the stove at an appliance store with an interest free credit card. You get my drift? People don't use vendor credit enough. It's often green short term money. We always buy appliances, flooring, etc. with 18 month interest free yada yada and pay it off as soon as the flip closes.
Contractor · Atlanta, GA · Member since 2016 · 104 posts · 22 votes
9y
I would ask friends and give them a good percentage back. Hit that credit card up . See if contractor will finish up wait on check and you work out a percentage with him.