New to Real Estate · Shelby Township, MI · Member since 2021 · 4 posts · 0 votes
My goal is to do 2 flips in the next 12 months to create enough capital to put a downpayment on a duplex to house hack. I have no money to put into a deal. Recently, I went to a local real estate investing meeting and spoke with someone who is a hard money lender. Hearing about it opened my mind up to the possibility of obtaining a flip property using hard money as a means to purchase a home and some sort of gap funder to cover the closing costs and rehab costs. Is this a realistic way to get an eager person like myself to create capital or does this sound like a first timers recipe for disaster? I know hard money tends to be suggested to those more experienced, and I've heard that hard money lenders typically only like to lend to people with experience. Am I better of just being patient and saving money or should I stop being scared and start calling around to lenders and ask them what my options are?
I would recommend using hard money and a partner with experience and gap funding, this way you get the best of both worlds. With as difficult as it's becoming to find good deals, lots of experienced folks would be interested in partnering with you if you find a good deal.