BRRRR Help With First Property

[Noah Joseph Armstrong]

Over the last year or so, I have been soaking everything I can in real estate. I found a 4 bed, 2 bath house for sale in my hometown FSBO for $45k. I am confident I can get it even lower. That being said, I have not yet seen it, so I am not sure what it really needs at this time. I have 13-18k to spend on downpayment and rehab without taking out a loan.

What is recommended for getting finance help on BRRRR methods? All my lenders around here seem to be very strict on what they will give. Could I theoretically go conventional for more than asking and use the extra to reno?

[Jon Kelly]

@Noah Joseph Armstrong most (maybe all) lenders will not provide conventional financing if a property is not habitable. 

You can search BP or google for short-term bridge or "fix-and-flip" loans. Interest rates are higher, but these types of loans provide financing for 3-6 months so you can complete the renovation. Once you place the tenant you should refinance with a conventional loan right away and repay the short-term loan. 

Private money is another good option. If the rehab is ~$20k, you only need to raise $40-45k. Can you find friends or family that are willing to lend $45k for 3-6 months? You can either make them equity partners in the deal or pay them 10% interest ($2-3k if you hold for 6 months), or any number you agree on.