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Updated over 4 years ago on .

User Stats

6
Posts
1
Votes
Mo Abour
  • Developer
  • Chicago
1
Votes |
6
Posts

Trying to figure out financing option that makes the most sense

Mo Abour
  • Developer
  • Chicago
Posted

Hello so here's what I'm (a general contractor) working with:The Deal:

  • $20,001 for the purchase of
    • City of 100,000+ residents / majority low income but plenty of opportunity including financing the construction from the government
    • 9 parcels of land
      • ARV (As is): 63k
      • ARV (with improvement based on comps): $700k - 1.4MM
    • 1 commercial warehouse - 7000 sqft, undisturbed since it went vacant
      • ARV: $50k
    • 1 SFH- 5br/2ba - 20k sqft lot
    • 1 duplex- 5br/3ba
      • estimated construction - $30k

The business:

  • 1 year old
  • $200k revenue - $33k profit
  • Established trade credit but vendors never reported
  • Experian grade - B
  • No debt
  • $6k in outstanding invoices

Personal:

  • Less than stellar credit
  • Track record of successful ROI for partners and private lenders (family)
  • Have a credit partner who will be completely silent

Credit Partner:

  • 794 credit score
  • currently has 11k credit limit
  • 0% utilization


So in order to do this my plan is to:

  • Increase credit partners credit limits
  • Add me on as an authorized user to help raise personal credit
  • Either do a business line of credit, hard money, non-recourse? or something else??? - then BRRRR

What do you guys think? Is there a better strategy than i stated above or would you change the product?
Would love your opinions as I have a few days left to close on this or walk away. Thank you!