Lima 1 Capital or Conv Loan with Heloc for Rehab

[Erik Dofelmier]

We are under contract on a duplex that we are going to rehab. My current plan of attack is to use a conventional mortgage I'm already approved for on the initial loan, and then use part of my HELOC to pay for the rehab. I've still been shopping around to find other potential sources of lending, and my local bank mentioned I should check out Lima 1 Capital. Has anyone had any recent experience with this company? Is this something you'd recommend for a first-time investor for a rehab loan? They said I would use their "Fix N Flip" loan (13 months, interest only, funded 100% of the construction costs on a reimbursement model), immediately followed by their long-term rent loan (30 year fixed or 10/1ARM, Cashout Refi up to 75%). My plan is to basically BRRRR the duplex. Therefore, my current plan is to finance the rehab with the HELOC, then immediately refinance to pay back HELOC funds. That said, would there be any significant advantages going with the L1C loans versus using HELOC funds if I aim to refi immediately? Thoughts, advice, opinions? Thanks!