Rental Property Investor · Chicago, IL · Member since 2019 · 25 posts · 29 votes
I am purchasing an eight unit building that needs some minor cosmetic repairs, nothing major but I need to bring the building up to code and make repairs to the roof. My estimate is about $30,000 for the repairs. The bank I am purchasing the building with is providing a great rate and terms for the purchase, but not the repairs. I had other companies that I considered that offered the money for purchase and rehab, but the rates were high and terms were not that good. Now I have to either find a company that can extend a loan for the rehab or use my credit cards. Is there a company out there that can provide only rehab funds? I am not looking to refinance as I am closing within the next 3 weeks or so and there are harsh penalties for early payoff of the loan. Suggestions?
@Michael Taylor I would reach out to your inner circle and see if they would want a return on they're money, if that isn't a feasible option then possibly use credit cards 0% interest for 12 months so you can pay it back. Best of luck!
@Michael Taylor I would reach out to your inner circle and see if they would want a return on they're money, if that isn't a feasible option then possibly use credit cards 0% interest for 12 months so you can pay it back. Best of luck!
You aren't likely to find an institutional lender that will lend 30K or be in second position. could you clarify what you mean when you say "I am not looking to refinance as I am closing within the next 3 weeks or so and there are harsh penalties for early payoff of the loan"? What loan would you be paying penalties on since you haven't purchased yet?
Hmmmmm.... i might put a little pause on this and do some research into a loan that better fits what u want to do. Putting 30k on a CC is nuts. And if you are borrowing with a prepayment penalty all I can ask is why?
Thanks for all the replies. I went with this lender as they are giving me a 4% 30 year term, others would have given rehab money but at twice the rate. They do have a 5 year prepayment penalty, so this is why I am not interested in refinancing after I close.