How to get Rehab funds

[Teresia M.]

I received a response to a yellow letter and the seller is agreeing to seller finance the property for 18k with 5k down 5% interest with a balloon in 3 years. The property needs 30k of work. Margins are slim on this deal as the ARV is 60k. I will want to refinance and hold the property after rehab. My question is how can I ask the owner to finance the rehab in addition to the seller financing? What is a good way to structure that deal?

[Lisa Kohl]

If the owner is extending the financing I would think it would be unlikely that they would also front your rehab costs as well. You can always try reaching out though. In the event that doesn't work I would suggest using your own resources i.e. HELOC, personal line of credit, credit cards etc. Family and friends could be another go to resource. Also, if the deal makes sense you could possibly to a joint venture with someone too.