How do i fund the rest?

[Briana Crosby]

I have a hard money lender that is willing to give 75k for a foreclosure property, as long as I have all of my bells and whistles in order. Meaning, great contractors and ETC! The property itself is 61k, but i was going to try and talk to them down to 55k, so that I'd at least have 20k for renovations. 

(I'll also add that they're wanting an earnest money deposit of 15k---don't know if i should do it or not)

My question is, how do I pay for everything else without available liquid assets? Most of the time, when people advertise about coming an investor, they claim you can get started without using your own money. Well, I've taken care of some of that problem, how do i fund the rest? I'd still need to pay contractors, realtors, appraisers && ETC! Please give me some pointers. I'm also still researching because I'm new at this, so be easy on me LOL. 

[Jamal Jefferson]

One of my first deals, I was in the same situation. I am more of a high risk investor, so I am not recommending what I did; its based on your risk tolerance.

Hypothetical Situation:

Acquisition: $55,000 - Hard Money Lender 

Construction: $20,000 - Hard Money Lender

Earnest Money: $15,000 - 0% intro APR business credit card (will get back with hard money acquisition money)

Closing Costs & Other Fees: - 0% intro APR business credit card

Paying Contractors: - this depends on if the $20,000 from the hard money lender will be given in draws or not. In the case you have the money up front, you will have the cash available. If not, I particularly pay my contractors in phases through plastiq.com with a 0%apr card.

It really depends on your risk tolerance, what you have available to you and the particular situation you are in. This would also be based on the property having a high enough ARV before buying and renovating to ensure when I refinance, all the expenses can be paid back accordingly.