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Updated over 4 years ago,
Trying to figure out financing option that makes the most sense
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!