Gap Funding Information & Request

[Simona Balca]

Hi, I am a Canadian Investor that has recently bought a property in Tampa, FL to renovate and flip.  There are two renovation options I am looking into, one is an interior renovation another is a complete demolish and rebuild.  As a non-american, I understand that I am not able to apply for the Crowdfunding program.  Not 100% sure how I can go about obtaining gap funds.  

Purchase Price: $180,000

Renovation: Rehab budget $100,000 (contractor to confirm estimate within 5-7 days), ARV $425,000, Average days on market 10, Estimate turnaround 4 months

New Build: Rehab budget $370,000 (contractor to confirm estimate withing 5-7 days), ARV $650,000, Average days on market 60, Estimate turnaround 12 months

Thanks in advance for your help and guidance...  I have relatively recently joined the BP team and have learned tremendously.  I feel privileged to be among so many great minds and individuals that have grit and determination.  Thank you!

[Colin Mooney]

Hey Simona Balca

I am glad to see you are investing in the Tampa Bay Area. I work with a lot of investors that have this same question. There are positives and negatives to each strategy. I will try to break some down for you to help you decide.

Renovation: based on the purchase price, estimated repair cost, and ARV you are buying the property at 66%. Those numbers are unbelievable in the Tampa market currently. Even though there could be some unseens with a rehab you have a lot of room for error.

New build: based on your numbers for the new build you would be buying that at around 84%. The positive of a new build is that there are no unseens. The downside is that you tie up a lot of money for an entire year.

Based on the numbers you shared I would personally just rehab the property. This is based strictly on your ROI. Even though a lot of people are doing new builds in Tampa right now, this deal makes more sense to flip. I wish I could provide assistance on a lender, but I do not have any connections with gap lenders who will lend to individuals outside the US. I hope this helps. If you have any other questions or need help finding resources in this are please feel free to reach out.