There are a few ways you can finance your property.
Naturally cash would be the best. Obviously, this is not always possible.
Loans. Banks love a good potential and they know real estate is a good investment. When borrowing though be sure to stretch the payments out as long as you can, for as little per month as possible. Pay the minimum payment until you start drawing rent. When the property is rented you should put all of the rent toward the loan and the rehab costs. If possible, try to get the rehab money in with the loan. If not, use a credit card and count on using part of the rent you get to apply on the loan, and the other part to pay the card. If you do it right, all the money that you receive will pay on your property. You will soon have it paid and all the rent will be cash flow in your pocket.
Credit cards. I chose a low interest credit card with a generous cash advance feature. I bought and rehabbed my first house with a credit card!
There are many ways to finance rehab properties. It is also to your advantage to check your city rehab grants. I was lucky and received a grant for my first house of $15,000. The condition was that I rent to low income families (which I had planned to do anyway). It would be worth investigating.
Do It Yourself vs. Hiring an Attorney
If you don’t know real estate it can only be to your benefit to spend the little money it costs and hire a real estate attorney. The worst possible scenario would be that you think you bought a great rehab property only to find out the person who sold it to you has multiple liens or worse, doesn’t own the property.
Finding and buying rehab property can be a lot of work, but definitely worth it in the long run. Knowing how to find the right property and finance it can help you on your way to a lucrative financial future!