From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1520 topics, 14434 posts — Last Post 04/23/14, 07:50AM

BiggerPockets Exclusive PRO Area

118 topics, 844 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10961 topics, 86391 posts — Last Post 04/23/14, 08:47AM

Real Estate Success Stories

397 topics, 6188 posts — Last Post 04/23/14, 07:49AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5981 topics, 47151 posts — Last Post 04/23/14, 08:44AM


649 topics, 5854 posts — Last Post 04/23/14, 05:49AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/21/14, 03:59PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

658 topics, 6315 posts — Last Post 04/23/14, 06:01AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3702 topics, 29691 posts — Last Post 04/23/14, 07:54AM

Real Estate Guru, Book & Course Reviews and Discussions

1138 topics, 11593 posts — Last Post 04/23/14, 08:45AM

Ask About A Real Estate Company

742 topics, 7341 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies


5628 topics, 43888 posts — Last Post 04/23/14, 08:38AM

Rehabbing and House Flipping

3348 topics, 31087 posts — Last Post 04/23/14, 08:37AM

Real Estate Development & New Home Construction

554 topics, 4694 posts — Last Post 04/22/14, 09:17PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

867 topics, 6692 posts — Last Post 04/22/14, 08:22PM

Rent to Own a.k.a. Lease Purchase, Lease Options

698 topics, 4918 posts — Last Post 04/23/14, 07:45AM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3102 posts — Last Post 04/22/14, 01:39PM


1217 topics, 10594 posts — Last Post 04/22/14, 09:38PM

Short Sales

1538 topics, 13139 posts — Last Post 04/22/14, 01:38PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7236 topics, 71049 posts — Last Post 04/23/14, 08:46AM

Mobile Homes & Mobile Home Park Investing

639 topics, 5144 posts — Last Post 04/23/14, 07:57AM

Investor Basics

Starting Out

7725 topics, 60640 posts — Last Post 04/23/14, 08:24AM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4726 topics, 37302 posts — Last Post 04/23/14, 08:39AM

Real Estate Investor Marketing

1737 topics, 14139 posts — Last Post 04/23/14, 02:44AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1412 topics, 9004 posts — Last Post 04/23/14, 08:50AM

Multi-Family and Apartment Investing

1122 topics, 9356 posts — Last Post 04/23/14, 08:18AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

644 topics, 4909 posts — Last Post 04/22/14, 12:20PM

Business Basics

Goals, Business Plans & Entities

832 topics, 7566 posts — Last Post 04/23/14, 08:19AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2801 topics, 20118 posts — Last Post 04/23/14, 06:24AM

Property Insurance

310 topics, 2055 posts — Last Post 04/22/14, 07:38AM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2852 topics, 19838 posts — Last Post 04/23/14, 08:25AM

Creative Real Estate Financing

1217 topics, 8843 posts — Last Post 04/23/14, 08:19AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1217 topics, 8024 posts — Last Post 04/23/14, 08:23AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1929 posts — Last Post 04/22/14, 11:03AM


269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2011 topics, 11714 posts — Last Post 04/23/14, 08:47AM

Americans & International Real Estate

162 topics, 568 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 439 posts — Last Post 04/22/14, 09:27AM


Real Estate Marketplace

Real Estate Marketplace

15074 topics, 54091 posts — Last Post 04/23/14, 08:30AM

Real Estate Events and Happenings

167 topics, 2588 posts — Last Post 04/23/14, 08:03AM


Off Topic


2907 topics, 32438 posts — Last Post 04/23/14, 04:54AM

Housing News & Real Estate Market

920 topics, 8378 posts — Last Post 04/23/14, 08:21AM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Real Estate Marketplace » Small Flip Deal to Build Relationship - $30k- $75k

Small Flip Deal to Build Relationship - $30k- $75k

14 posts by 6 users



We have a small deal under contract and figured it would be a great opportunity to start a long term relationship with another private or hard money lender.

Purchase Price: $30,100

ARV: $119,000 (150 sq ft addition)
Recent comps available upon request
*All comps sold within 6 months, under 0.4 miles away (most on same street)
*High development area

Rehab: $45,000 max (6 month total loan max, rehab under 4 months)
*Green rehab features will be included, benefits are faster selling time, alignment with your personal values

Quiet costs: Approx. $14k - $17k

Rates: Looking for flat simple interest of 12-14%, no prepayment penalty, 6 month terms. Higher rates reserved for larger loan sums. All negotiable BUT one thing I ask is that you MUST be looking for a long term lending relationship. Our goal is to immediately roll your funds into a new deal right upon completion of this one.

Detailed investment summary available upon request as well as investment history of previous deals.

Message me here, reply to thread, or email me at my personal email below.


Fresh Start Homes, LLC

Real Estate Lender · Chicago, Illinois

One comment and one question.

If any borrower ever tries promising me a "max" cost or "max" time frame, I know they don't really know what they are doing. I can't remember the last time one of these promises was kept.

How much of this $90K total cost are you investing or are you looking for 100% financing plus rehab costs?


I suggest you look for better borrowers, Eric.

My inclusion of max cost and max time is to protect my lenders. Anything above and beyond those figures has and always will be covered by myself and my company. We have enough contingency funds and reserves built in for every deal so that we are never running back to the lender requesting more money. Would you rather a borrower requests money with an open time frame and an open rehab budget?

As for how much we are requesting, the title stated $30k - $75k with higher rates reserved for investors looking to fund more of the deal. The more money I can borrow the more I am willing to pay as it keeps my own funds liquid and allows me to look for more deals.

Thank you for the comment,


SFR Investor · Wheat Ridge, Colorado

Where are you and the property located?

You're generally not going to be able to keep the money between deals. That is, you get a loan on the deal. The lender funds the loan at closing and you give them a deed of trust (or whatever it is in your area). When you sell, that loan gets paid off and the payoff goes to the lender. Then you repeat the cycle on the next deal.

Jon Holdman, Flying Phoenix LLC


@Jon Holdman, I am located in Norfolk, Virginia, as is the property.

I am familiar with the deed of trust process and I may have misstated in my original post regarding recycling of funds as I did not mean to imply keeping funds in between deals. My goal would be to identify a deal as the first property comes under contract so that there is as little gap between deals as possible. The first transaction will be completed prior to any re loaning of funds.

Of course, lenders are not tied to this process and can opt out of the next deal for any reason.

Thanks for the clarification, Jon.


SFR Investor · Wheat Ridge, Colorado

Sorry, I'm no help for that location.

Jon Holdman, Flying Phoenix LLC

Rehabber · Santa Clarita, California

What about points, are you willing to pay points in addition to the interest?
When is your closing date?
Are you prepared to provide bank statements proving reserves and capital for rehab along with corporate docs?
Who besides yourself is part of the company guaranteeing the loan?
Are you all willing to sign a personal guarantee and prove assets?

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]


All inquiries have been replied to. Thanks to everyone who has expressed interest.

To succinctly answer Will's questions:

- Unfortunately, No. We are transitioning from hard money and are looking for cheaper financing.

- Feb. 27th. A small daily per diem will be paid by my company in the case that a lender requires a few additional days. If this is not the case then we will buy the property outright while continuing to entertain potential lenders.


-Fresh Start Homes' CFO (check my website for more info on my company and it's members)


I will update on the deal's status but until I state otherwise this deal is still open for lenders. Our goal is to establish a long term relationship and to align financial goals.

Thanks everyone,


Real Estate Investor · Summerville, South Carolina

Quite enjoyed reading Will's questions since they get at some of the worries of a person who is interested in this idea of earning that kind of return (well, comparing it with CDs, stocks, bonds, etc not comparing it with an average flip or anything in this "real estate" category.
And @Glenn Espinosa, good job man. Your website looks good, and your goal of doing good while doing well is admirable. I can appreciate your request/parameters and if I had the money at present, I would probably be quite interested. I am kind of on my own journey re: developing expertise in finding/buying/flipping or holding SFDs and so I'm afraid any dollars I may liquidate from a condo I have that is underperforming will need to go to that. I'm kind of in the same shoes as you more than I am a viable lender.

OK this reply is dragging on: I wish I could help. In a few years I imagine I could, and if your reputation is still solid and you have similar needs we might could work together in the longer-term wya you suggest. I'll end with that.


@Jason Merchey I appreciate the kind words! Looking to working with you in the future!

Commercial Real Estate Broker · Canton, Georgia

Glenn have you landed any contacts from your local real estate association there for lending money?? Not the HML's but people with private capital.

It's the ultimate problem for flippers. Flips are getting thinner as more rehabbers enter the market. To preserve margins rehabbers are searching for private capital with no points and a lower interest rate.
High interest rates and points take what little meat is left on the bone for rehabbers these days.

HML's want a seasoned rehabber but still want to churn points and loans for volume. The ones willing to pay the higher rates are often the inexperienced and the most risky for a HML lender. So what everyone wants is usually at odds with each other. Same tale with buyers and sellers in that people have to find the common ground that works for both parties to consummate a deal.

I have looked at HML lending and other types of RE investing but I have not found a greater return for me than doing mailers and closing more commercial sales as a broker. From one 50 cent mailer I can generate sometimes a 40,000 commission or greater from a listing. So I just haven't found anything that comes close to that kind of return. I don't like with HML that your funds aren't liquid and all these things can happen where you don't see the return and it takes awhile to get your money back again. I think locally you might have some luck farming for capital. They are just changing the advertising rules recently so that is good.

Small_allworldrealtyJoel Owens, All World Realty
E-Mail: [email protected]
Telephone: 678-779-2798
Website: 678-779-2798 [email protected]



I have done some networking with people from local associations. So far everyone I've met is either blowing smoke, charging way too much as compared to my current lenders, or are new investors who are not as far into their real estate journey as I am. Keep in mind, I've been out of the country for 9 months so opportunities to network face to face have been slim up until recently.

The few people that I have met that are worth keeping in contact with will need a little bit more massaging before I feel comfortable pitching to them. I only have one shot to pitch to the the big dogs and I definitely do not want to mess it up. In the meantime I will be working on building my track record and my business so that I am ready when the time comes.

As an update: Looks like this deal will be finalized in the next few days. I was able to find two new private investors to fund the entire 75k. Pretty excited and can't wait to over deliver on this deal!

Thanks to everyone who inquired and provided feedback.


Rehabber · Santa Clarita, California

Congrats Glenn. I reviewed your docs and your resentation sent. I must say that for someone with limited experience, your packet is the most professional I have come across. Kudos for putting that together.

Though I am late on this deal and you appear to have funded it, I do look forward to speaking with you in the near future on additional projects.

-Will Barnard

Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]



Coming from an investor who I've admired for the longest on BP, that compliment means a lot. Thank you!

I look forward to speaking and meeting with you on future deals. Once our current plates are near clearing I'll come knocking.


Sign up