How are you funding your rehabs?
Here in California, in most of our markets, the prices of the houses are so high that is difficult to come up with all the money for the purchase price AND pay for the rehab, interest, monthly payments, etc.
Then you have to wait months to get your money back out of the property. While I was waiting, my crews were wandering off to other jobs because I couldn’t keep them busy enough since all my money was in one project.
How are you funding your rehabs on homes over $500k per purchase?
I fortunately found a way to do it but it is not available everywhere. I am curious if anyone has found this in their area.
The way it works is a passive money investor is willing to put up 100% of the purchase price AND the rest of the costs and share in the risk and the reward.
At first glance, I thought that sharing the rewards would cut into my overall profit. But I can now do far more deals because my money isn’t tied up. I keep my crews busy. And I can say yes to every deal that makes sense. So, now I say that I can’t afford to keep it all. Sounds strange, but it is true.
In fact, I see such a need for 100% Fix and Flip Financing that I started offering it to other investors in California.
Has anyone found something like this anywhere else in the country? How has it helped you grow your business?
revised due to rules violation