As stated earlier, I am just itching to get out there and do a flip. Whether this happens or not is a matter for discussion, but I’m still dreaming and scheming up ways to make it happen as easily as possible.
It is a simple matter to get a mortgage for the purchase price of a house, however, it is often more difficult to find traditional financing for renovations. So, here are some other ways I am thinking of raising some needed capital to pay for renovations:
- 0% balance transfers
- Remortgaging my properties back to 25% principal (similar to a HELOC)
- This could net me $20,000 in working capital.
- Increasing my own credit card limit
- Bad idea because I don’t want to carry a balance, period
- Also, I eventually want to separate my business and personal finances so I have some level of decreased personal liability, and potential for some tax benefits.
- Secured line of credit
- Using other people’s money (investors)
- This is my primary focus at this time. I want to gather some investors, and offer them a tidy return (10%) in return for the ability to use their money on the flip.
- Right now, I haven’t started signing people up, but some preliminary work has been done to feel out some prospects.
Any other ideas out there? That’s all I can think of for now.