Ok I have a rehab question. Help me

[Tony Velez]

I'm still trying to figure the rehab niche out. Let's say for expample. 

Find a deal for 75k. 

Needs 15k rehab.

ARV $130k.

Help me understand this. 

Lets say you put 20% down

Mortgage 60k

Where does the 15k for rehab come from?

[J Scott]

If you need money for buy-and-hold, here are your options:

- You bring the cash

- You get a conventional loan and you bring any down-payment and rehab costs

- You get a portfolio loan and you bring any down-payment (and potentially rehab costs)

- You find private money and you bring whatever amount you can't raise

- You find a partner and you bring whatever amount the partnership agrees upon

- You get the seller to hold back a note on portion or all of the purchase price -- you bring whatever amount the seller requires as down-payment and the rehab costs

Those are pretty much the options.  For the scenarios where you have to bring money, it's up to you to figure out where it comes from.  The only ways not to bring any money is to raise it all (private money) or find a partner who is willing to put it all up.