How to raise $50k to finish a rehab?

[Tim Callahan]

Hey group,

I have a rehab property I'm working on here in Southern Maine. PP is $150k, rehab costs are about $75k, and ARV is $350k. We bought the house and are currently rehabbing it. Problem is, we only have about $175k total (no mortgages on the house, just cash), and need an additional $50k to finish the rehab. I can't take out a HELOC on my own home. We could find a hard money lender, but would have to make hefty payments on that for the next few months. Would it be appropriate to solicit an investor here on BP for a $50k investment, first position secured by the house, in exchange for a backend return (no monthly payments), payable around September, October of this year? If this post is not allowed, please delete. I'm just brainstorming. Thank you.

[Alvin Sylvain]

I don't know your situation, but I've always considered that my keeping excellent credit would mean that it should never be difficult to get 10's of 1000's of dollars of near-instant credit using a regular credit line or a credit card. I know some people use the credit card as their first resort. It might be better as a last resort. I'm thinking, make your plans and try to have enough money to do what you know is going to be needed. But plans often go awry, "Stuff Happens," and it should be good to still have a nice fat credit card to fall back on in case of emergencies.

Also echoing what @Scott E. just said. If you have access to hard money, use it. Yes, hard money is expensive. I think that's why they call it "hard", coz if it was cheap, it would be "easy." But if that expensive money helps you complete the deal and sell at a profit, it's worth it.