First time to the forum, first post, 4th property. Basic info about myself: owned properties, did major renovations, including foundation underpin. Renovated with personal cash most of the time. Considered high earners -- affects my capability to foot the bill of 500k HELOC.

Just straight disclaimer, I am an out of state investor (for GA). And I will be relying on contractors and PM to manage. Can't compete on cost efficiency with local guys. The property is down to the studs, we will be closing with 850k, offer binding today. 450k projected rehab cost. Exit strategy is refinance 800k, the projected rent roll is 10k to 15k.

Talked with many hard money lenders and got several soft quotes. Maybe because I did all my rehab and reno in the past with cash, but the terms of hard money is high 10.9 - 12.5% with 2-2.5% origination fee, and a long list of draw fee, inspection fee, doc fee etc.

Right now i have 450k cash in the bank, 250k HELOC from main property, another 200k HELOC can be opened on my fully owned GA SFH. I have an investment partner in this deal with me, 300k. HELOC cost 2.5% origination/draw fee and rate is 10%. I won't be dealing with any other lender fees and go at my own pace. And HELOCs are re-usable, so i can save that 2.5% origination fee for multiple use in the next 5 years.

Alternatively I could go learn the typical way and deal with HML, build a network. And learn how to stomach the fees. Does the HML route gets easier when you do it a couple times? We do intend to scale out and do more in the future. Is this the best route?

3rd option is start looking for more LP/ private funds from friends. Using my personal name as guarantee, I could probably go lower on the rate, 8-9%. If they see the return, they might join as partner in the future?

I would like to listen to the forum for any advise on different pros and cons of different approach.

PS. if anyone has a good contractor recommendation for this size of project (8000+ sq ft rehab), please let me know. Atlanta area. My agent has one recommended and I am working with the contractor. But I like options (implies negotiating power).

Atlanta, Georgia

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