Credit card financing is probably the lousiest type of financing you can get. That said, if you have to use it, you have to use it. I completed quite a few properties using credit cards. Once in awhile, I’ll still use credit cards for small down payments.
The key is to turn the property around FAST, to avoid accumulating credit charges. If you’re going to keep the property, start working on a refinance as soon as possible. If you’re going to sell, market the property aggresively.
Make sure you have a lot of confidence in your builder, dad or not. In your construction costs, include an estimate of the “carry cost”, that is, the monthly payments you’ll have to make on the credit cards during renovation. Use home improvement centers’ credit when availabe, and watch for “no interest for 90 days” specials. Some subcontractors will also extend credit to you.
Remeber, get the project done as soon as possible. A renovation project which drags on can extoll a significant financial and emotional cost.
I’ve been trying to get into real estate for almost two years now> I first bought carlton sheets then did the coaching program with no avail. But now I have a chance I found a handyman property. The 4 bedroom 1&1/2 bath spilt level home has some fire damage on the first floor and needs some work MY father who happens to be a builder how conveinent seems to think it may need about 20-25,000 to fix up. They are asking 62000. Houses in the developement are going for about 120000 most of which are are 3 bedroom ranchers. I want to do this but I don’t have much money to put down. about 2000 or a little more if nessesary. I would love to do it 0 down and put the repairs in the financing or on credit cards till I could sell the property. the place already has couple offers I have to act fast. any ideas? any help at all would be a greatly appreciated. this could be the jumpstart in investing I need.