Blessings, I have purchased, renovated and sold 4 properties successfully and under budget to date utilizing cash. A majority of the renovations are not being outsourced in order to maximized my profits. I am interested in leveraging some 'Private Lending' financing going forward on my next property which is currently under contract and should close in a 1-2 weeks. The goal of this property is to sell not hold. So the question is should I pay cash for remaining purchase/closing and utilize Private Lending for the rehab($75k) OR leverage 25% Private Lending towards purchasing/closing($75k) and fund the rehab with cash? In other words, since I handle a majority of the renovations, which option is easier to obtain Private Lending towards, Purchase or Rehab?
Here is the scenario:
Purchase Price: $325,000
Cash Contract Deposit: $32,500
Comps ARV: $470,000- $495,000
Est Repairs: $75,000
If you need further details in order to provide a more experienced suggestion please feel free to contact me.
Thank you for your wisdom in advance!
Mark V
