Second option is a private loan. You might know someone who will be willing to lend you money to complete your project in return for higher interest rate than what they are getting on CDs or stock market. You will offer then Vibrational
Manifestation 1st lien on your property and refinance out of their loan in 6 to 8 months or earlier. This is a great alternative to hard money loans. You can negotiate low or none closing costs and lower interest rate.Complete your rehab. At this stage you have to be focused. Monitor your contractors. Always check on the work that is claimed to be completed before you pay them. And one rule that can not be broken and I can not stress it enough;
DO NOT prepay your contractors. If you want to complete your project on time and within your budget and don't want to get screwed out of your hard earned $$, do not prepay for any work. Don't let anyone convince you otherwise. This one mistake can break your whole venture and leave you with a huge debt and nothing to show for it.Refinance with conventional lender. As soon as your repairs completed start applying for refinancing. At this stage you will have to do second appraisal of the property. This will be 'as is appraisal' to determine what the current value of the house is. If you did your homework at the beginning of your project and your initial estimates were correct, by now you have created enough equity to refinance out of your hard money loan. In some cases you might be even able to walk away with cash from the closing table to buy some nice furniture for your newly remodeled home.Why go through all this trouble? You can have a newly remodeled home, completely customized to your own taste and needs for a total cost of 70 cents on dollar or less compared to the property values in your area.
DO NOT prepay your contractors. If you want to complete your project on time and within your budget and don't want to get screwed out of your hard earned $$, do not prepay for any work. Don't let anyone convince you otherwise. This one mistake can break your whole venture and leave you with a huge debt and nothing to show for it.Refinance with conventional lender. As soon as your repairs completed start applying for refinancing. At this stage you will have to do second appraisal of the property. This will be 'as is appraisal' to determine what the current value of the house is. If you did your homework at the beginning of your project and your initial estimates were correct, by now you have created enough equity to refinance out of your hard money loan. In some cases you might be even able to walk away with cash from the closing table to buy some nice furniture for your newly remodeled home.Why go through all this trouble? You can have a newly remodeled home, completely customized to your own taste and needs for a total cost of 70 cents on dollar or less compared to the property values in your area.
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