All Forum Posts by: John Huegel

Depending on your area, you might be able to locate discount/wholesale building supply companies. Around my area we have Carter Lumber which has a few locations in New Jersey as well. They usually have a lot of the bigger building materials like siding, windows, doors, etc. 

I also usually price check on the internet between Lowe's, Home Depot, Menards and even Amazon. You'd be surprised sometimes how different the pricing is.

Personally, if you haven't seen the home inside and out and/or are not familiar with construction, I would wait until the contractor can see the property and estimate your rehab costs. Once you have that you can work on what you would offer for the property. 

Many hard-money lenders can quickly tell you if they would finance a deal and can also provide you with a pre-approval; but you would need to know your numbers first.

Thanks everyone. I spoke to my initial lender last night and they are willing to finance the deal after the deed is recorded. I need to pay for the property in cash, wait 14 days to record, then they will reimburse me the purchase price and provide renovation funds. I am still reviewing my options though as I might be able to find a better deal with my new scenario.

Thanks Caroline. I may be at the mercy of the existing hard money lender as all others won't touch this deal due to being "rural." And all liens were wiped out.

Thanks Erik. Yes it needs a ton of work. 

Hello. I am looking for advice on financing of a fix and flip where the property is purchased in cash but I need money for renovations. Long story short, I won a sheriff sale auction back in February which is finally being processed. My hard money lender called yesterday and notified me they cannot finance the deal because the sheriff's office records the deed 14 days after they receive the money. Due to this I must purchase the home in cash and get financing to pay myself back and fund the renovations. I believe my options include the following but I am open to suggestions.

1. Continue to work with hard money lender. They will finance the deal after the property is purchased in cash.

2. Home equity loan or HELOC on the flip property. Issues with this might include not being a primary residence and/or the length of time it has been owned by me.

3. Home equity loan or HELOC on my primary residence. My current rate is 2.99% so I would probably avoid a cash-out refi as current rates are much higher.

Which of these options, in general, would cost the least to finance?

Thanks!

John

Thanks everyone for the information and/or advice. Every little bit is helpful.

Hi guys, thanks for the tips. I was able to find a FB group and requested to join. Not sure what will come of that, but if anything, it'll be a way to connect with others. I have the 20% down.. this seems to be the norm with most lenders.

Hello. I recently won a bid on a sheriff sale property in the Youngstown/Warren area. I had originally planned to fix and flip the property but due to the location (near a lake), I am considering fixing and holding it (rent and refinance). One of the lenders I spoke with suggested a "fix and hold" loan (vs "fix and flip" loan) which can then be converted to a traditional mortgage, eliminating or reducing the seasoning period.. This lender would not finance the project due to being designated as a "rural" property (although it is not). I also do not have many official flips under my belt, therefore, I have been rejected by a few lenders due to that.

Can anyone offer advice on how to finance this project and/or lenders that might have more relaxed lending requirements?

Thanks in advance!

John