Financing My First Brrrr Deal

[Ben Hutto]

I’m working with three partners on our first brrrr. We were doing some homework on financing when a great deal fell into our lap. We decided to make an offer on a 4/3 single family. After a few counters, the offer was accepted and we are under contract as of this morning. We have enough cash between the four of us to put 25% down and still have enough to complete the $25,000-$30,000 in expected repairs.

Financing is our issue. At face value, the house is in decent shape. It definitely needs one bathroom reno and a water heater to be livable. There is probably more, but we won’t know until the inspection in two days. That said, what are our financing options? Is conventional financing out of the question? We’re considering a commercial loan and hard money as well. Our offer only states that we need to apply for a loan in the first 7 days after ratification and we have a 45 day close.

Any pointers would be greatly appreciated!