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Updated over 2 years ago on . Most recent reply

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89
Posts
34
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Season Price
  • Flipper/Rehabber
  • Maryland
34
Votes |
89
Posts

Creative options for down payment on HUD purchase

Season Price
  • Flipper/Rehabber
  • Maryland
Posted

Hi. I was able to get a HUD rehab under contract recently/ Fortunately, or unfortunately, two of our other deals went through at the same time. We are in a dilemma when it comes to the down payment since all of these are going to be closing around the same time. I had originally posted about GAP funding, but I am realizing that although there are companies who do it, they are hard to find apparently. So, now I am here looking for creative alternatives so we can get all three deals to the closing table. A heloc is not an option. What other options are there for personal, or LLC funding we can take to the table? Thank you

Numbers (in case they matter)

Purchase: 210k

rehab: 60k

ARV: 404k

down payment and closing: about 50k

Most Popular Reply

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Scott Trench
  • President of BiggerPockets
  • Denver, CO
5,938
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2,692
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Scott Trench
  • President of BiggerPockets
  • Denver, CO
Replied

Here are some options: 

1) Attend the local RE Investing Meetup in your area (or contact the host of that meetup) and ask if there are any private lenders. 

2) Consider using a hard money loan. 

3) If you have a 401(k), you can borrow against that. 

4) If you have after-tax brokerage stock accounts, you can take a margin loan and repay it.

I'm sure there are more, but hopefully this is a good start to the discussion - look forward to seeing what others suggest. 

Good luck!

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