Lending Ideas For A New Rehab Business
I am starting a business buying, fixing, and selling rehabs. I've entered a phase where we are ready to buy our first deal but want to make sure we are as efficient as possible with the loan product/method we go with.
We have available to us a $60K line of credit from a lender, 0% interest for the first year. Of the 3 partners involved all have excellent credit and about $20K a piece to invest. My question is what is the best method of financing a rehab project considering the multiple closings (potential), interest to keep costs low, and risks. Thanks in advance!! ; )
Sorry, no suggestions.
I'd just like to keep track of the responses to this post.
I have similar aspirations.
[addsig]
So can you buy and fix a house in the Orlando area for $120k? If so I'd do it that way for the first one. After you have a couple under your belt you might want to talk about either increasing the LOC or financing each acquisition. But its very nice to have the cushion of no mortgage payments on the first deal.
Sorry, commercialking, I wasnt clear in my post, the homes we are looking at are in the $150-$180 range so my question is what kind of financing methods are approiate for this type of deal? Given our means I am looking to maximize our buying power. Thanks!