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Updated about 8 years ago,

User Stats

75
Posts
45
Votes
Kevin Fontleroy
  • Investor
  • Lee's summit, MO
45
Votes |
75
Posts

Need help getting creative to finance rehab on package of homes

Kevin Fontleroy
  • Investor
  • Lee's summit, MO
Posted

Oh the joys of being a new investor!!!

So here we go, i purchased 6 homes on an owner finance for with 25% down.  2 of them need serious rehab, 3 are mostly cosmetic, and 1 is rent ready.  Here is the dilemma, when i called a lender they said they can't do a cash out rehab on the only 1 house(im not doing all the rehabs at the same time) because it was purchased as a package.  They also said they can't do a construction due to it being a package.  Now i'm stuck with 6 homes and limited means of doing the rehab.  Also, if i rehab just 1 of the properties and sale it and the rent ready home, i could pay off the owner financing, make a profit and have 4 homes free and clear.

If anyone has ran into a situation like that i would to hear about some strategies that was used to get your project back on track.  

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