Attorney · Columbus, OH · Member since 2015 · 22 posts · 15 votes
Hi everyone. I am new to Bigger Pockets and new to the real estate investment profession. I am looking to fix and flip as well as buy and hold rental properties.
Regarding fix and flips, I can say right now that I do not have the capital to be able to pay out of pocket for the rehab necessary to make the investment worthwhile. Does anyone have any ideas as to how I could potentially fund/finance the rehab costs?
There are a few properties in my area that have great potential. The one thing stopping me currently is not having the capital at my disposal to pay for the rehab costs!
We are doing a flip right now where a private lender could cover the property purchase price but we had to come up with the repair budget. My wife found this program.
A couple of thins to watch for: ordering cabinets from Home Depot takes 3 weeks. Then it takes another 3 weeks for stone countertops as they will not measure until the cabinets are set. We still got the countertops from Home Depot but we had to go a different route for cabinets as we did not have 6 weeks to wait on these items.
My wife and I are doing most of the work ourselves. We are contracting out the electric, plumbing, and HVAC. To further our creative financing, we are using contractors who take credit cards or provide financing. We will pay this debt off at the sale of this house. If you don't, you are looking at getting into credit card problems.
Even though we are paying a little more on the contractors, it is almost a wash compared to carrying costs if we financed through HML or private lenders.
Assuming you have the purchase of the property covered, Home Depot has a Project Loan program where you can get up to $40k. All purchases must be through Home Depot.
If you use them for installation, they will probably be a bit above market.
If you are handy, you get the material from Home Depot and install yourself.
We are doing a flip right now where a private lender could cover the property purchase price but we had to come up with the repair budget. My wife found this program.
A couple of thins to watch for: ordering cabinets from Home Depot takes 3 weeks. Then it takes another 3 weeks for stone countertops as they will not measure until the cabinets are set. We still got the countertops from Home Depot but we had to go a different route for cabinets as we did not have 6 weeks to wait on these items.
My wife and I are doing most of the work ourselves. We are contracting out the electric, plumbing, and HVAC. To further our creative financing, we are using contractors who take credit cards or provide financing. We will pay this debt off at the sale of this house. If you don't, you are looking at getting into credit card problems.
Even though we are paying a little more on the contractors, it is almost a wash compared to carrying costs if we financed through HML or private lenders.
Awesome information! I would absolutely pay off any borrowed money once the flip sold, or the buy and hold was refinanced. I am trying to get a 4 plex now. It has been completely gutted down to the studs because of a fire. I'm hoping for owner financing on the property and private money for the rehab. Being a newbie investor, I don't know if any private lenders would help me. I'm going to look into this Home Depot loan. I will use credit cards, my home equity line, and anything else I can to get this deal done. Thank you for the advice!