Help Me Think Outside The Box.
Most of the time I just use my equity in my home to fund flippers. However, I have just finished one and it has not sold yet. Also, I have found another deal that the numbers make since for my first rental property. The problem is that I do not have enough money availabel to purchase the property. So, my question is this. Should I A: by the property on my credit card. B: Go to the bank now to purchase the property. or C: Go to the bank after I have bought the home on my credit card and have a renter and get cash out at closing to got towards another deal.
Thanks for any help and for your time. This is a new site to me and it is awsome.
hmmm if you can use your own equity, at your mortgage rate its probably the cheapest cost of money. Alternatively, when you find a deal, you could find a partner who is willing to go splits with you. Seeing as you already have a successful history flipping, you could create a portfolio of your previous works, coupled with your own salesmanship you could do just that without tying up your already tied up funds. JMTCW, I cant imagine you would have a problem - theres money to be had for your deal.
Thanks Stevequan for your ideas. I have two friends that based on my past success with flippers, they want to each do a deal together with me. I think I will talk to them about doing the rental investment with me. The property has plenty of cash flow and it would decrease my risk. Not a bad idea at all.
cjmazur, thanks for the input. I do have equity in the house that is for sale, about $35,000 worth. Please share your thoughts...
I will be in touch with the banks that I have a relationship with on tuesday. Also I was thinking about the numbers on the house that I am trying to flip and I did not take out a mortgage for that house. I used my equity to purchase and zero percent credit cards to fix up. So, I have zero dollars in the property as far as the bank is concerned and that means I have about $100,000 of equity to be creative with. Wow, thanks for helping me think out of the box.
also look at credit unions.
The have much more flexible underwritting guidelines. One I like alot is pentagon federal cu.