Looking for advice

[Marnica Jeanpierre]

Hi everyone , I purchased two homes cash last year, and the homes need full rehabs. I do not have the funds to complete the rehabs , and all the lenders I’ve researched will not fund the rehab money. They are only willing to fund the entire deal purchase price + rehab. I didn’t realize that purchasing the homes with my own money would create such a hassle for me. Can anyone recommend a lender that is willing to fund rehab money only ? Or is that not a thing . My credit score is over 800, but I would rather not use my personal credit if possible . Any recommendations

[Mike Wood]

@Marnica Jeanpierre  You will need a construction loan from a bank, likely only local banks will do it, as you dont plan on living in the property.  Since you own house, you can use that as your required equity on the construction loan.  But you will need a GC to run the job and since you likely have no or limited construction experience, the bank will want a firm estimate from the GC to do the loan.  While the construction loan will be need to be in a business name, they will all want a personal guarantee, but it will not show up a debt on your personal credit.  

While I understand the concept mentioned by another post on using a personal loan, I am not sure its that easy to get a $50k or more personal loan to do an entire house rehab.  Maybe if you had tons of money or income, but if that was the case, you likely wouldnt need a loan.