Put in an offer but didn't have cash to cover

[Kevin DuBrey]

So I have a property I am looking at that will require a renovation and could potentially earn a revenue of 73k per year as a short term rental on a 240k property. Probably a 35-45k renovation Unfortunately I do not have the cash at the present time to cover the cash offer. The real estate person made it seem as though that would be the only way to secure the property. So we tried hard money lender, but just do not have the cash to cover. Any suggestions, other than back out of the deal? I think I will back out of this deal, at least we went through the motions which may be the first step and can make it a learning opportunity.

[Nathan Gesner]

Quote from @Kevin DuBrey:

So I have a property I am looking at that will require a renovation and could potentially earn a revenue of 73k per year as a short term rental on a 240k property. Probably a 35-45k renovation Unfortunately I do not have the cash at the present time to cover the cash offer. The real estate person made it seem as though that would be the only way to secure the property. So we tried hard money lender, but just do not have the cash to cover. Any suggestions, other than back out of the deal? I think I will back out of this deal, at least we went through the motions which may be the first step and can make it a learning opportunity.

Owner financing?

Partner with friends, family, or someone you know with money?

Personally, I think it's too much risk. If your renovation estimate is low, you're partner may not be too happy throwing more money at it. I suspect we're in a peak market, plus interest rates and inflation can quickly change reality and throw your plans right down the toilet.

Hustle to increase earnings, save, and prepare for the next opportunity.