10 ways to put it to work
Keep more cash working for you.
When financing covers more of the purchase and eligible rehab, you can keep more cash available for the rest of the project. Here are ten ways to put that flexibility to work.
- 01
Keep more working capital available.
Financing more of the purchase and eligible rehab can leave cash available for the rest of the project. Set aside money for interest, taxes, insurance and utilities before you commit it elsewhere.
- 02
Build a cushion for surprises.
Use some of the cash you preserve as a contingency for repairs or delays. Keep that cushion separate from your regular budget so one unexpected expense does not force a rushed decision.
- 03
Plan the purchase and rehab together.
Review the acquisition and renovation as one project. An itemized scope and contractor pricing help you see what the loan may cover and which costs you will need to handle separately.
- 04
Compare financing with bringing in a partner.
Higher leverage may reduce the cash gap you would otherwise fill with an equity partner. Compare borrowing costs, repayment obligations and any proposed profit-sharing before deciding which structure fits your deal.
- 05
Stay ready for another opportunity.
Cash retained on one property may give you more flexibility when another deal comes along. Take on a second project only when your reserves, team and schedule can support both.
- 06
Let the deal support the loan.
Start with a sound purchase price, realistic rehab costs and supported after-repair value (ARV). Ask how those numbers limit the actual loan. Available leverage is not a reason to overpay.
- 07
Keep the renovation moving between draws.
Rehab funds are generally released in stages, not all at closing. Confirm inspections, fees and reimbursement timing. Keep enough cash available to pay for work or materials before the next draw arrives.
- 08
Compare the full cost of borrowing.
A larger balance can mean more interest and greater repayment exposure. Compare the total estimated financing cost, not just the down payment, and check how delays would change your numbers.
- 09
Give your exit plan room to work.
Preserved cash can help cover a longer holding period. Run the numbers for a later sale or a lower selling price. If you plan to refinance, check the requirements rather than assuming approval.
- 10
Get a financing review before you commit.
Bring the property address, purchase price, rehab budget, ARV support and target closing date. Share your experience and available reserves, too, so we can discuss a structure that fits the actual project.
Have a property in mind?
Let’s look at your deal.
Send the property address, purchase price and estimated rehab budget. I’ll help you understand what financing may be available and what cash you should plan to bring.
Talk with Joel Explore our Fix & Flip financing optionsJoel Vazquez · CEO
BearCrest Funding LLC
For general education only, not a commitment to lend or a promise of investment results. Business-purpose investment properties only. Financing up to 100% of purchase and eligible rehab costs is available only for qualifying projects. Loan amount, cash requirements and draw terms depend on the property, borrower, program and underwriting. Programs and terms are subject to change and final approval.