Orlando, FL · Member since 2019 · 6 posts · 1 vote
I'm looking at purchasing a property in Detroit. I have a pretty good idea of which neighborhood I'd like to buy in. I will be purchasing with cash & all of the properties I'm looking at will need some rehab. I'll be doing most of the work myself or having family help.
What can I do to fund my repairs?
(I have W2's, but no recent paystubs (recently switched to full time commission based work).
I know there's secured loans & HELOCS, but how does that work if I can't show proof of income? Or will they just use the ARV of the home as collateral for the loan?
Ypsilanti, MI · Member since 2018 · 189 posts · 127 votes
7y
Sounds like you could do a modified BRRRR. Buy the house with your money, get a hard money loan to cover the repairs, then refinance and pay both yourself and the loan off. Gotta make sure it's the right property though.
Ypsilanti, MI · Member since 2018 · 189 posts · 127 votes
7y
Sounds like you could do a modified BRRRR. Buy the house with your money, get a hard money loan to cover the repairs, then refinance and pay both yourself and the loan off. Gotta make sure it's the right property though.
Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
7y
Are you looking to hold or flip the property? Is it inside the city or in the suburbs? There are a few hard/private lender sources that possibly would fund the deal depending on it's location.
Ypsilanti, MI · Member since 2018 · 189 posts · 127 votes
7y
@Christina Mahesse definitely possible. I havent worked with anyone I would recommend, but I’ve spoken to a few local investors who have done something similar. Call some hard money lenders! You’d be looking for a rehab loan, probably offer you something in the 6mo. to 1yr range with a balloon payback. I’ve found rates between 6% and 11% for that type of loan, so include that in your cost calculations.