Where to get money for renovations?

[Juliette V.]

I've always been nervous to buy a property that might need anything more than some paint and new carpet....

So, I see places with potential but shy away because I'm not sure where to get money for renovations?

Any ideas...or advice?

[Corey Beckwith]

Hi,
Great question. You can also try this option with a contractor that u know and trust. I don't know your financial situation, but if you know a contractor who would be willing to partner with you on a deal, that could really work out. You can purchase the house and pay for all the material, and he can provide the labor. Instead of you paying for the labor up front, you can agree to split the profits when you sell the home. You can structure it in a way where you can ask him/ her what they would normally charge (labor only) for a job like this. Let's say he/she says 10k. If you know you have a potential to make let's say 30k or more in profits on the deal, you can tell him/her that when the house sells they can potentially make 15k at the end instead of the 10k. Let him/her know everything will be in writing, so that they can feel secure. You can also choose to split the profits 50/50, allowing them to make even more money. I'm sure there's other ways and ideas to make this type if partnership work. This is just one idea. You can also have the contractor pay for the material or you can open up a Home Depot or lowes credit card if your credit permits. Etc.

All the best
Corey