All Forum Posts by: Brian Zimmerman

Would I be able to use a hard money lender if I were to use my own cash to get the loan amount to 60% ARV?

For example let's say there is a house selling at 80k with an ARV of 100k, and I put in my 20K. Does the hard money lender care how the equity is created? Would they object to me living in the property as a primary while its being rehabbed? Would the cash reserves that they are looking for change?

I found a property that would work, however it to get it to 60% ARV, it would use most of my cash, my plan would be to use my earned income to finance the repairs with a projected sale of 6-12 months.

What is the best approach to buying a primary residence while doing rehab deals?...

I'm just starting out and would like to know if there might be some major disadvantages to one approach vs. another.

Initially I was thinking to buy a low end condo in order to minimize expenses and use the additional cash flow toward doing rehab deals.

However now I'm thinking about using my primary purchase as a 6-9 month rehab in order to kill two birds with one stone....

The only drawback might be that I might end up rushing a purchase just to make it work with my time requirements as I have a lease ending in a few months.

Right now I have 30k to work with, but am debt free and should be able to add approx 30k/yr to my working capital.... I figure I could finance the first transaction via FHA, which I already have lined up with very little out of pocket and use the rest to improve the property and continue on to the next deal.

Besides the obvious drawback of actually having to move every 6 months... is there other things I'm not considering?

any advice you have would really be greatly appreciated!