Let’s Play – Funding for Flipping

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:

  1. 0% balance transfers
    • See this great article on 2million‘s blog.
    • He gives some great advice and specific strategies for taking advantage of 0% transfers.  The guy’s a pro at it.  He currently has almost $40,000 in loans at zero percent…  now you’re talking!  Thanks for the great guide 2mil.
  2. Remortgaging my properties back to 25% principal (similar to a HELOC)
    • This could net me $20,000 in working capital.
  3. 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.
  4. Secured line of credit
  5. 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.

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