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Updated almost 8 years ago on . Most recent reply
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Rehab to Refinance Hard Money Roadblock
Hello BP!
I have ran into a Roadblock on my flip.
I have a seller financed home that I have put a large down payment on and put around $10k worth of work so far. I have a hard money lender and we are pretty much set to go on finishing the rehabbing. My contractor wants $10k up front before starting in order to pay for supplies, no issues with that. The only thing is my hard money lender bases payments off of draws in small increments. How would I be able to pay him through my hard money for the initial $10k?
Has anyone negotiated this with their hard money lender or found a creative way without having to go into your own pocket for the $10k? I would appreciate feedback from those who have navigated this terrain before. Thanks!
Most Popular Reply
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open a home depot/lowes (insert store name here) account and go with your contractor when he buys stuff. charge it to the account. that way you aren't giving him money (which he could steal), you know he is actually buying stuff for your project and can finance it through the store.