Fix and Flip Financing Advice

[Jordan Smith]

Hello all - need some advice on the best way to finance this deal considering I will not be able to carry it with cash. Here are some fairly conservative details:

Purchase Price + Closing Costs: $370k

Renovation Costs: $25k (very conservative)

ARV: $515k

I have $55k cash on hand, with an undrawn line of credit of $100k.

The renovation will go very quickly, about 30 days.

Questions:

- Is there a short term bridge loan (interest only) option available in the market?

- What is the best way to minimize my transaction costs, given that I will need financing?

- How can I best position myself with a lender? I have a mortgage on my primary residence (same lender who holds my HELOC), but no other debt (personal or investment property). My AGI is $120k on my 2020 return, but that did not include by annual bonus paid in January 2021 of $40k (new job in 2020 so wasn't eligible to receive prior to Jan 2021).