Rehab Loan in Austin, TX

[Mike Gorius]

Hi Everyone,

I live in Phoenix, and I'm under contract for a single-family detached home in University Hills. I was able to secure seller financing, which leaves me to find funding for the rehab. This will be my first time working in Austin, so I have no contacts. Does anyone have recommendations for a private money lender who would be open to lending the rehab costs? Comps are below.

400K for the home

150K in rehab

650K ARV

Thanks,

[Riaz Gillani]

Congrats on securing the contract ... it could be tough getting a loan for the rehab costs from a private lender. Very few (if any) are willing to be in a second position. You should explore raising money from friends or family, finding a partner for the deal, or business credit (a $150k budget is probably too high for this ...). 

A HELOC is a great option also if your primary has some equity. But this deal specifically is pretty tight on return (85% Cost to ARV) so do all you can to keep carrying costs low - maybe even see if its possible to lower the budget.