Liberty Mutual, United States discussed on Real Estate Rookie


Today's question comes from shanty long and shanties question is we're about to close in a duplex in. It's going to need anywhere between six thousand to ten thousand dollars in repairs. What are some options for funding this rehab so ash. I'll let you go first narconon chime in with my thoughts afterwards. Okay the first thing. I thought of when i was reviewing this question was credit cards. So what did you say. It was six to ten thousand. They're looking to spend with that amount. You could easily get a credit card. Usually for that amount of money and there are so many credit cards out there that will do zero percent interest. So what this means. Is you start buying materials supplies with the credit card at lowe's home depot wherever your hardware store is to get your materials or even online new use credit card to pay and the credit card will usually give you zero percent interest so all you have to do is make a minimum payment every month which can be if you have ten thousand dollars on their. Depending on the interest rate you could probably be paying ninety dollars a month is the minimum payment towards the card. So what your strategy here is to get a card that has that zero percent interest for as long as you're going to be doing the rehab and until you can refinance so for example. Some of the cards will do it for eighteen months. And hopefully your rehab and your refinances completed by then so that you can pay off the credit card before you're actually charged interest on those payments and you're just making that minimum payment which is actually going towards your balance and not towards interest. So i think that is one of the greatest tools that you can actually use and you can find the zero percent interest credit cards on the business side or in your personal name to. Yeah no. that's great advice actually and especially at that dollar amount right sixty thousand you said. It should be not too big of an obstacle for most people to get approved for for something around that loan limit. I think something else to consider and shaun tait didn't really share. What the potential rv or the purchase price of this property is but i mean at six thousand dollars you could also try and borrow money from a family member from a friend and say hey. Loan me ten thousand dollars. I'm gonna fix up. This property wants it's done. I'm going to be able to pull out forty thousand dollars. Whatever the number is. And then. I'll be able to give you a return on your money

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