How To Come Up With Rehab Money
I can get a hard money loan to purchase a property, but I don't have the cash to rehab. Any suggestions (bad credit so getting a credit card is out and friends and family are inflexible). Also why do hard money lenders say they cover rehab costs? I mean, if you don't get any cash out, then how can you fund a rehab? Also, I was thinking of finding someone who would lend me the cash say $10,000 w/ 15% interest and in return, I'd give them 10% of the net profit from buying the property. Where could I find someone who'd be willing to help out with something like that? Any assistance would be greatly appreciated and I will love you forever! 
When a hard money lender says they
'fund rehabs', it means they provide money in escrow, which is usually only half of the estimate for repairs. the other half is put up by you at close, and then you have to come out of pocket on the rehab until the repairs are complete. at time of completion, the repair escrow will be signed over to you to compensate for coming out of pocket.
Thank you blackjeep. Anyone have ideas on how to fund the rehab? Post Here!
Kbragg,
What does the deal that you are needing the $ for look like?
They're selling the property for 24K cash. I could probably talk them down lower. With a little TLC I fell I could double the value of the home. Problem: I don't have the cash on hand to fund the rehab. I know there are hard money lends that will finance the deal and cover closing costs, I just don't know where to start to get cash for materials. My husband and I are both mechanics so we would do most of the repairs ourselves (except electrical. I wouldn't trust my hubby chaning a lightbulb! )
Its going to be hard to find a lender that will loan that small amount of money
The 24K or the rehab money?
bump
Any more ideas?
birddog it to someone with money. after a few deals, fix your credit and then get a line of credit. after you get a loc then you'll be in a better position to buy rehabs.
just my 2 cents
I saw somone mention taking a 2nd mortgage at or soon after closing. How would I do that and wouldit be cash out or escrow like the hard money lenders?