Help Me Think Outside The Box.

Most of the time I just use my equity in my home to fund flippers. However, I have just finished one and it has not sold yet. Also, I have found another deal that the numbers make since for my first rental property. The problem is that I do not have enough money availabel to purchase the property. So, my question is this. Should I A: by the property on my credit card. B: Go to the bank now to purchase the property. or C: Go to the bank after I have bought the home on my credit card and have a renter and get cash out at closing to got towards another deal.

Thanks for any help and for your time. This is a new site to me and it is awsome.

Comments(5)

  • stevequan29th May, 2005

    hmmm if you can use your own equity, at your mortgage rate its probably the cheapest cost of money. Alternatively, when you find a deal, you could find a partner who is willing to go splits with you. Seeing as you already have a successful history flipping, you could create a portfolio of your previous works, coupled with your own salesmanship you could do just that without tying up your already tied up funds. JMTCW, I cant imagine you would have a problem - theres money to be had for your deal.

  • fullbank29th May, 2005

    Thanks Stevequan for your ideas. I have two friends that based on my past success with flippers, they want to each do a deal together with me. I think I will talk to them about doing the rental investment with me. The property has plenty of cash flow and it would decrease my risk. Not a bad idea at all.

  • fullbank29th May, 2005

    cjmazur, thanks for the input. I do have equity in the house that is for sale, about $35,000 worth. Please share your thoughts...

  • fullbank29th May, 2005

    I will be in touch with the banks that I have a relationship with on tuesday. Also I was thinking about the numbers on the house that I am trying to flip and I did not take out a mortgage for that house. I used my equity to purchase and zero percent credit cards to fix up. So, I have zero dollars in the property as far as the bank is concerned and that means I have about $100,000 of equity to be creative with. Wow, thanks for helping me think out of the box.

  • cjmazur30th May, 2005

    also look at credit unions.

    The have much more flexible underwritting guidelines. One I like alot is pentagon federal cu.

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